NXP Semiconductors NV (NXPI)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		2.33	2.68	3.19	4.20	4.25
DOH	days	156.49	136.10	114.35	86.87	85.89

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.33
= 156.49

Based on the provided data, NXP Semiconductors NV's days of inventory on hand (DOH) have shown an increasing trend over the years.

As of December 31, 2020, the company had 85.89 days of inventory on hand, which increased slightly to 86.87 days by December 31, 2021. However, there was a more significant increase in DOH to 114.35 days by December 31, 2022, indicating that NXP Semiconductors NV may be carrying a higher level of inventory relative to its sales.

Further exacerbating this trend, by December 31, 2023, the DOH had climbed to 136.10 days, and then substantially increased to 156.49 days by December 31, 2024. This suggests that NXP Semiconductors NV is taking longer to sell its inventory or facing challenges in managing and controlling its inventory levels efficiently.

Overall, the increasing trend in days of inventory on hand for NXP Semiconductors NV raises concerns about its inventory management practices, which may lead to higher carrying costs, potential obsolescence risks, and reduced liquidity if the trend continues unchecked. Further analysis of the company's inventory turnover and sales growth would provide additional insights into the efficiency and effectiveness of its inventory management strategies.