NVIDIA Corporation (NVDA)
Days of inventory on hand (DOH)
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.24 | 3.15 | 3.15 | 2.25 | 2.25 | |
| DOH | days | 112.72 | 115.99 | 115.99 | 162.08 | 162.08 |
January 31, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.24
= 112.72
The Days of Inventory on Hand (DOH) for NVIDIA Corporation has shown a decreasing trend over the last few years based on the provided data. In January 2023 and January 2024, the company had 162.08 days of inventory on hand, which decreased to 115.99 days by January 2024 and further to 112.72 days by January 2025.
A lower DOH indicates that the company is efficient in managing its inventory, as it takes fewer days to sell its inventory or convert it into sales. This can lead to lower holding costs, reduced risk of obsolescence, and better responsiveness to changing market demands.
NVIDIA's declining DOH over the years suggests that the company has been successful in improving its inventory management practices, potentially through better demand forecasting, production planning, and supply chain efficiency. However, it is essential for the company to continue monitoring and optimizing its inventory levels to maintain a balance between avoiding stockouts and minimizing holding costs.
Peer comparison
Jan 31, 2025