OSI Systems Inc (OSIS)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019
Inventory turnover		3.27	2.79	2.59	2.63	3.24	2.79	2.85	2.79	3.03	2.94	3.01	3.13	3.38	3.35	3.63	3.89	4.22	4.34	4.17	3.92
DOH	days	111.74	130.67	141.17	138.80	112.68	130.69	127.98	131.00	120.50	124.15	121.40	116.58	108.14	109.02	100.59	93.94	86.48	84.08	87.57	92.99

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.27
= 111.74

The days of inventory on hand (DOH) for OSI Systems Inc has fluctuated over the past few years. The trend indicates an increase in inventory holding period from December 2021 to March 2024, with a peak of 141.17 days in December 2023. There was a slight improvement in inventory management by the end of June 2024, with DOH decreasing to 111.74 days.

Generally, a decreasing trend in DOH is favorable as it suggests efficient inventory management and quicker turnover of inventory. Conversely, a rising trend in DOH may indicate excess inventory levels or slower sales, which could lead to increased storage costs and potential obsolescence risks.

It is important for OSI Systems Inc to closely monitor and manage its inventory levels to optimize working capital and operational efficiency. Analyzing the factors contributing to fluctuations in DOH can help identify areas for improvement in inventory management practices.