NXP Semiconductors NV (NXPI)

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	Dec 31, 2018
Inventory turnover		2.68	2.64	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	3.55
DOH	days	136.10	138.03	135.68	127.04	114.35	103.07	98.84	93.04	86.87	87.68	85.18	84.43	85.89	91.38	107.95	102.84

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.68
= 136.10

The days of inventory on hand (DOH) for NXP Semiconductors NV have exhibited a general increasing trend over the past eight quarters. In Q4 2023, the company reported a DOH of 136.10 days, a slight decrease from the previous quarter but higher than the levels observed in earlier periods. This indicates that NXP Semiconductors NV is holding its inventory for a longer period before selling it.

The continual increase in DOH from Q1 2022 to Q4 2023 suggests that NXP Semiconductors NV may be facing challenges in managing its inventory efficiently. A high DOH value could imply excess inventory levels, potential obsolescence risks, higher storage costs, and reduced cash flow due to tied-up capital.

It is recommended for NXP Semiconductors NV to closely monitor and optimize its inventory management processes to improve inventory turnover, reduce DOH, and enhance operational efficiency. This may involve implementing better demand forecasting, streamlining supply chain operations, and aligning production levels with actual sales to ensure optimal inventory levels.