Power Integrations Inc (POWI)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		1.17	1.13	1.16	1.23	1.32	1.53	1.59	1.79	2.10	2.55	2.90	3.25	3.45	3.70	3.53	3.10	2.38	2.14	2.10	2.24
DOH	days	311.23	322.91	315.66	295.78	276.25	238.75	229.33	203.81	173.90	143.11	125.67	112.42	105.74	98.61	103.42	117.62	153.44	170.57	173.48	162.74

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 fluctuations over the period. From March 31, 2020, to December 31, 2021, there was a general trend of decreasing DOH, indicating more efficient inventory management. However, from March 31, 2022, onwards, the DOH started increasing significantly, reaching its peak at 322.91 days on September 30, 2024.

A high DOH could suggest that Power Integrations Inc is carrying excess inventory, which can tie up capital and increase storage costs. It may also indicate potential issues with demand forecasting or supply chain management.

Analyzing the DOH figures alongside sales and production data would provide more insights into the reasons behind the fluctuations. Monitoring and controlling the DOH can help optimize inventory levels, reduce carrying costs, and improve overall operational efficiency for Power Integrations Inc.