Nextracker Inc. Class A Common Stock (NXT)

Days of inventory on hand (DOH)

		Mar 31, 2025	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
Inventory turnover		9.31	7.95	9.99	10.86	8.36	8.48	8.40	11.91	11.70	6.32	6.09	6.04	7.63	6.73	10.16	10.85	11.41
DOH	days	39.19	45.91	36.55	33.60	43.65	43.04	43.43	30.65	31.20	57.74	59.98	60.47	47.83	54.25	35.94	33.65	32.00

March 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.31
= 39.19

The days of inventory on hand (DOH) ratio for Nextracker Inc. Class A Common Stock indicates the number of days it takes for the company to sell its inventory on hand. A lower DOH value is generally preferred as it signifies faster inventory turnover and efficient management of inventory levels.

Analyzing the historical DOH data provided:
- The DOH was relatively stable around the 30-35 days range from March 2021 to June 2023.
- There was a significant increase in the DOH to 54.25 days by December 2021, indicating a potential buildup of inventory or slower sales during that period.
- The ratio fluctuated between 30-60 days from March 2022 to September 2024, showing some volatility in inventory management.
- By December 2024, the DOH increased to 45.91 days, suggesting a potential need for the company to assess and optimize its inventory levels.

In general, it is essential for Nextracker Inc. to closely monitor its DOH ratio to ensure efficient inventory management, optimize working capital, and avoid potential risks associated with excess or obsolete inventory. Additionally, periodic evaluation and adjustment of inventory levels can help improve the company's overall operational efficiency and financial performance.