MACOM Technology Solutions Holdings Inc (MTSI)

Days of inventory on hand (DOH)

		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	Dec 31, 2019
Inventory turnover		1.73	1.62	1.59	1.65	1.93	1.93	2.08	2.25	2.34	2.40	2.81	2.96	3.21	3.23	3.20	3.00	2.84	2.61	2.59	2.49
DOH	days	211.40	225.51	230.13	221.61	189.44	188.97	175.80	162.07	155.99	152.20	130.06	123.20	113.88	113.04	113.98	121.59	128.63	139.73	141.08	146.72

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.73
= 211.40

The days of inventory on hand (DOH) for MACOM Technology Solutions Holdings Inc has fluctuated over the past few years. The trend indicates an increasing average DOH from 113.98 days in Mar 31, 2021 to a peak of 230.13 days in Mar 31, 2024, followed by a slight decrease to 211.40 days as of Sep 30, 2024.

A higher DOH value suggests that the company is maintaining inventory for a longer period before converting it into sales. This could indicate inefficiencies in inventory management, such as overstocking or slow-moving inventory. On the other hand, a lower DOH value would mean the company is able to sell its inventory more quickly, which could indicate efficient inventory turnover and better liquidity.

It would be important for MACOM Technology Solutions Holdings Inc to monitor its inventory levels closely to ensure optimal balance between stocking enough inventory to meet demand and avoiding excess inventory holding costs. Additionally, analyzing industry benchmarks and trends could provide further insights into the company's inventory management effectiveness.