Motorola Solutions Inc (MSI)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover		7.02	6.56	6.56	6.14	6.10	5.18	4.93	4.59	4.63	4.03	4.09	4.47	5.24	6.82	7.19	7.27	7.49	7.84	8.60	8.91
DOH	days	51.97	55.67	55.63	59.44	59.88	70.50	74.00	79.51	78.86	90.55	89.17	81.70	69.62	53.50	50.78	50.23	48.72	46.54	42.42	40.95

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.02
= 51.97

The days of inventory on hand (DOH) for Motorola Solutions Inc have shown fluctuations over the analyzed period. DOH represents the average number of days that a company holds onto its inventory before it is sold.

From March 31, 2020, to December 31, 2021, there was a gradual increase in DOH, indicating that the company was holding onto its inventory for a longer period. This could suggest issues with inventory management or a slowdown in sales.

However, from March 31, 2022, to June 30, 2024, there was a decrease in DOH. This improvement may indicate better inventory turnover and efficiency in selling products. Lower DOH reflects a quicker realization of sales and potentially reduced carrying costs associated with excess inventory.

Overall, a downward trend in DOH can be a positive sign, as it often signifies effective inventory management and an improved cash conversion cycle. It is important for Motorola Solutions Inc to strike a balance between maintaining enough inventory to meet demand and minimizing excess stock to optimize working capital and profitability.