Photronics Inc (PLAB)

Days of inventory on hand (DOH)

		Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Inventory turnover		11.18	12.58	11.77	10.12	9.31
DOH	days	32.64	29.01	31.00	36.08	39.20

October 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.18
= 32.64

The Days of Inventory on Hand (DOH) for Photronics Inc has shown a decreasing trend over the past five years, indicating an improvement in inventory management efficiency. The company reduced its DOH from 39.20 days in 2020 to 32.64 days in 2024, which suggests that it is taking fewer days to sell its inventory on hand.

This downward trend indicates that Photronics Inc has been able to better manage its inventory levels, potentially leading to lower carrying costs, reduced risk of inventory obsolescence, and improved cash flow. It also reflects positively on the company's ability to forecast demand accurately and maintain optimal inventory levels to meet customer needs efficiently.

Overall, the decreasing Days of Inventory on Hand for Photronics Inc signals effective inventory management practices and highlights the company's efforts to streamline operations and enhance overall financial performance.