NXP Semiconductors NV (NXPI)

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		2.38	2.56	2.69	2.77	2.71	2.65	2.69	2.87	3.19	3.54	3.69	3.92	4.20	4.16	4.28	4.32	4.25	3.99	3.38	3.48
DOH	days	153.29	142.43	135.62	131.56	134.57	137.98	135.64	127.00	114.35	103.07	98.84	93.04	86.87	87.68	85.18	84.43	85.89	91.38	107.95	104.79

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.38
= 153.29

The days of inventory on hand (DOH) for NXP Semiconductors NV have shown some fluctuations over the past few years. From March 31, 2020, to December 31, 2022, the DOH ranged between 84.43 days and 114.35 days, indicating variability in the company's inventory management efficiency during this period.

However, from March 31, 2023, to December 31, 2024, there was a noticeable upward trend in the DOH, increasing from 127.00 days to 153.29 days. This could suggest potential inefficiencies in inventory management, leading to a longer period for inventory turnover.

A high DOH value can imply excess inventory levels, which can tie up capital and increase carrying costs for the company. On the other hand, a low DOH may indicate a risk of stockouts and lost sales opportunities. Therefore, it is essential for NXP Semiconductors NV to closely monitor and optimize its inventory turnover to strike a balance between maintaining adequate inventory levels and maximizing operational efficiency.