Power Integrations Inc (POWI)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		1.17	1.32	2.10	3.45	2.38
DOH	days	311.23	276.25	173.90	105.74	153.44

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.17
= 311.23

The days of inventory on hand (DOH) for Power Integrations Inc have shown varying trends over the years:

- As of December 31, 2020, the company had an inventory on hand for an average of 153.44 days, indicating a moderate level of inventory management efficiency.

- By December 31, 2021, the DOH improved to 105.74 days, suggesting a more efficient management of inventory levels and potentially better working capital management.

- However, by December 31, 2022, the DOH increased significantly to 173.90 days, indicating a potential buildup of inventory or slower sales turnover.

- The trend continued to December 31, 2023, with the DOH reaching 276.25 days, reflecting a prolonged period of inventory on hand and possibly signaling challenges in inventory management or demand forecasting.

- The most recent data as of December 31, 2024, shows a further increase in the DOH to 311.23 days, highlighting a continued issue with inventory turnover efficiency.

Overall, the trend in the days of inventory on hand for Power Integrations Inc suggests fluctuating levels of inventory management efficiency over the years, with recent data indicating a significant increase in the time it takes to convert inventory into sales, which may warrant further investigation and potential optimization of inventory management processes.