Plexus Corp (PLXS)
Days of inventory on hand (DOH)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.57 | 2.27 | 3.29 | 4.25 | 4.31 | |
| DOH | days | 141.78 | 160.73 | 110.94 | 85.89 | 84.65 |
September 30, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.57
= 141.78
To analyze Plexus Corp.'s days of inventory on hand (DOH), we can observe a significant increase in the DOH over the past five years. In 2019, the DOH was 89.06 days, and it has steadily risen to 149.42 days in 2023. This indicates that it takes longer for Plexus Corp. to convert its inventory into sales, suggesting a potential inefficiency in managing inventory levels. A high DOH can tie up working capital and increase holding costs, thus impacting the company's liquidity and profitability. Management may need to focus on optimizing inventory levels and improving inventory turnover to mitigate the negative effects of prolonged DOH.
Peer comparison
Sep 30, 2023