MaxLinear Inc (MXL)

Days of inventory on hand (DOH)

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		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	4.74	4.19	3.75	3.92
DOH	days	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	76.93	87.05	97.29	93.10

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.08
= 118.55

The days of inventory on hand (DOH) for MaxLinear Inc have shown a fluctuating trend over the past eight quarters. DOH is a measure of the average number of days a company holds inventory before selling it. A higher number of days indicates that the company is holding onto inventory for a longer period, which may tie up working capital and increase the risk of obsolescence.

Analyzing the data, we can observe that the DOH has gradually decreased from 134.82 days in the third quarter of 2022 to 105.93 days in the second quarter of 2023. However, there was a slight uptick to 110.98 days in the third quarter of 2023. This suggests that the company has been efficient in managing its inventory during this period.

A lower DOH may signify effective inventory management, leading to reduced carrying costs and potentially higher inventory turnover. However, a very low DOH might indicate the risk of stockouts and lost sales.

It's important to consider industry benchmarks and specific operational requirements when evaluating DOH. Further analysis of the company's inventory policies, supply chain management, and demand forecasting is recommended to gain a comprehensive understanding of its inventory management efficiency.