OSI Systems Inc (OSIS)

Days of inventory on hand (DOH)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Inventory turnover		2.77	2.53	2.51	2.27	2.47
DOH	days	131.99	144.05	145.50	160.61	147.71

June 30, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.77
= 131.99

The days of inventory on hand (DOH) for OSI Systems Inc. over the specified period demonstrates notable fluctuations, reflecting changes in inventory management and operational efficiency. As of June 30, 2021, the DOH was approximately 147.71 days. This figure increased to 160.61 days by June 30, 2022, indicating a longer duration of inventory retention, which could suggest inventory buildup, slower sales, or strategic stockpiling during that period.

Subsequently, there was a decline to 145.50 days by June 30, 2023, marking a reduction in inventory holding periods and implying an improvement in inventory turnover or more efficient inventory management. This decreasing trend continued into 2024, with the DOH reaching approximately 144.05 days, and further reduced to 131.99 days by June 30, 2025.

Overall, the data indicate a trend toward more efficient inventory management, with the DOH decreasing from its peak in 2022 to levels closer to those seen in 2021, despite still remaining above the initial level. The reduction over these years could reflect improved sales performance, better inventory controls, or strategic changes in supply chain practices aimed at optimizing inventory levels relative to sales activity.