MaxLinear Inc (MXL)

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		1.83	1.89	2.18	2.55	3.08	3.29	3.45	3.14	2.93	2.71	2.94	2.94	3.01	3.16	3.98	3.60	2.72	1.80	3.95	4.54
DOH	days	198.95	193.03	167.69	142.93	118.55	110.98	105.93	116.35	124.55	134.82	123.98	124.31	121.22	115.60	91.59	101.26	134.35	203.30	92.52	80.36

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.83
= 198.95

MaxLinear Inc's Days of Inventory on Hand (DOH) measures the number of days it takes for the company to sell its inventory. A higher DOH value indicates that the company is holding onto its inventory for a longer period before selling it, which can tie up working capital and lead to increased holding costs.

Analyzing MaxLinear Inc's DOH over the reported periods shows fluctuations in inventory management efficiency. The trend indicates that in the earlier periods from March 2020 to September 2021, the company experienced increasing DOH, peaking at 203.30 days in September 2020, which may suggest potential issues with inventory management such as overstocking or slower inventory turnover.

However, from March 2022 to December 2024, there was a more stable trend with DOH ranging between 105.93 and 198.95 days. This indicates that the company may have made improvements in managing its inventory levels more effectively during this period.

Overall, it is essential for MaxLinear Inc to monitor and optimize its inventory levels to strike a balance between meeting demand and minimizing holding costs. Efficient inventory management can help improve cash flow, profitability, and overall financial performance.