Plexus Corp (PLXS)

Days of inventory on hand (DOH)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Inventory turnover		2.90	2.57	2.27	3.29	4.25
DOH	days	125.84	141.78	160.73	110.94	85.89

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.90
= 125.84

The days of inventory on hand (DOH) for Plexus Corp have shown fluctuations over the past five years. The trend indicates that the company has held inventory for an average of 125.84 days as of September 30, 2024, compared to 141.78 days in 2023, 160.73 days in 2022, 110.94 days in 2021, and 85.89 days in 2020.

A higher DOH value suggests that Plexus Corp is taking longer to sell its inventory, which could potentially tie up cash flow and result in holding costs. Conversely, a lower DOH value indicates faster inventory turnover, which may imply efficient inventory management and potentially better liquidity.

In analyzing the DOH trend, it is essential for Plexus Corp to strike a balance between maintaining adequate inventory levels to meet customer demand while avoiding excessive holding costs and obsolescence risks. Further investigation into the factors driving the changes in DOH over the years, such as demand fluctuations, supply chain disruptions, or changes in inventory management practices, would provide valuable insights for assessing the company's operational efficiency and financial performance.