MaxLinear Inc (MXL)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.08 | 2.93 | 3.01 | 2.72 | 4.74 | |
| DOH | days | 118.55 | 124.55 | 121.22 | 134.35 | 76.93 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.08
= 118.55
To analyze MaxLinear Inc's days of inventory on hand (DOH) over the past five years, we can observe a fluctuating trend. The DOH represents the average number of days it takes for the company to sell its inventory. A lower DOH is generally more favorable as it indicates efficient inventory turnover.
In 2019, the DOH was notably low at 76.93 days, suggesting strong inventory management and efficient turnover. However, there was a substantial increase in 2020, with the DOH rising to 134.35 days, indicating a slower inventory turnover rate.
The subsequent years showed a slight decline in the DOH, with 2021 and 2022 recording 121.22 days and 124.55 days, respectively. This indicates some improvement in inventory management but still reflects a longer period for inventory to be converted into sales.
In 2023, the DOH decreased to 118.55 days, suggesting a further improvement in inventory turnover, albeit remaining relatively high compared to 2019 levels.
Overall, the fluctuating trend in DOH indicates varying levels of efficiency in managing inventory and converting it into sales. Investors and stakeholders should continue to monitor this metric to assess the company's supply chain and inventory management practices.
Peer comparison
Dec 31, 2023