NetApp Inc (NTAP)
Days of inventory on hand (DOH)
| Apr 26, 2024 | Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 23.01 | 27.76 | 21.93 | 36.80 | 26.56 | |
| DOH | days | 15.86 | 13.15 | 16.64 | 9.92 | 13.74 |
April 26, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 23.01
= 15.86
The days of inventory on hand (DOH) for NetApp Inc has fluctuated over the past five years. In the most recent fiscal year ending April 26, 2024, the company reported a DOH of 15.86 days, which is higher compared to the previous year but lower than the levels seen in the fiscal years ending April 29, 2022, and April 24, 2020.
The increasing trend in DOH from 9.92 days in the fiscal year ending April 30, 2021, to 15.86 days in the most recent year indicates that NetApp Inc is carrying more inventory relative to its sales. This could be due to various factors such as production inefficiencies, changes in demand forecasting, or supply chain disruptions.
It is essential for the company to manage its inventory effectively to avoid overstocking and obsolescence risks while ensuring timely delivery to customers. Analyzing the reasons behind the increase in DOH can help NetApp Inc optimize its inventory levels and improve its overall operational efficiency and profitability.
Peer comparison
Apr 26, 2024