Plexus Corp (PLXS)

Days of inventory on hand (DOH)

		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	Jun 30, 2019	Mar 31, 2019
Inventory turnover		2.46	2.54	2.48	2.43	2.36	1.78	1.66	1.77	1.34	2.44	2.78	3.19	3.23	3.27	1.99	2.07	3.18	3.21	3.94	3.63
DOH	days	148.40	143.49	147.44	150.45	154.39	205.05	219.82	205.70	272.92	149.84	131.38	114.35	113.08	111.64	183.08	176.18	114.95	113.64	92.62	100.54

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.46
= 148.40

The days of inventory on hand (DOH) for Plexus Corp have exhibited fluctuations over the past few years. DOH measures how many days, on average, a company holds inventory before selling it. A higher DOH indicates slower inventory turnover, which can tie up capital and increase storage costs.

In the more recent periods, Plexus Corp has shown a trend of decreasing DOH, which is generally a positive sign. For example, DOH decreased from 154.39 days in Dec 2022 to 148.40 days in Dec 2023, indicating improved efficiency in managing inventory levels. However, the DOH spiked in the previous year, reaching as high as 272.92 days in March 2021.

The company's ability to maintain lower DOH levels in the most recent quarters suggests effective inventory management practices, such as better demand forecasting, streamlined production processes, and inventory control measures. Overall, monitoring and potentially further reducing DOH could help Plexus Corp optimize its working capital and enhance its overall operational efficiency.