OSI Systems Inc (OSIS)

Days of inventory on hand (DOH)

		Jun 30, 2025	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	Dec 31, 2020	Sep 30, 2020
Inventory turnover		2.77	2.53	2.48	2.32	2.55	2.17	1.97	2.02	2.51	2.13	2.16	2.10	2.27	2.20	2.25	2.33	2.47	2.43	2.60	2.79
DOH	days	131.99	144.17	146.97	157.55	143.18	168.15	184.84	180.30	145.50	171.04	168.69	173.96	160.61	165.83	162.51	156.53	147.71	150.36	140.35	130.78

June 30, 2025 calculation

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

The analysis of OSI Systems Inc.'s days of inventory on hand (DOH) over the given period reveals notable fluctuations and trends. Starting from September 30, 2020, with a DOH of approximately 130.78 days, the metric progressively increased, reflecting a buildup in inventory levels. By December 31, 2020, DOH rose to 140.35 days, and this upward trend continued through the subsequent quarters, reaching a peak of approximately 184.84 days as of December 31, 2023.

This sustained increase over nearly three years indicates a period of inventory accumulation, potentially reflecting factors such as increased inventory holdings to meet future demand, supply chain disruptions causing delays in inventory turnover, or strategic stockpiling in response to market conditions. The elevated DOH levels suggest a slowing of inventory turnover, which may impact liquidity and suggest operational inefficiencies or shifts in sales velocity.

Subsequently, a decline is observed beginning in March 2024, with DOH decreasing to approximately 168.15 days by that quarter and further reducing to 143.18 days by June 30, 2024. This downward trend continues through the remaining periods, reaching approximately 131.99 days as of June 30, 2025. The reduction in DOH indicates an acceleration in inventory turnover, suggesting improved inventory management, increased sales velocity, or potential adjustments in supply chain strategies to reduce excess stock.

Overall, the DOH fluctuated within a broad range during the analyzed period, with a significant peak towards the end of 2023, followed by a notable reduction. These movements underscore the importance of inventory management strategies and their impact on operational efficiency and liquidity position over the analyzed timeframe.