Qualcomm Incorporated (QCOM)

Days of inventory on hand (DOH)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Inventory turnover		2.66	2.47	2.94	4.42	3.56
DOH	days	137.42	147.71	124.20	82.61	102.46

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.66
= 137.42

Qualcomm Incorporated's Days of Inventory on Hand (DOH) is a measure of the average number of days it takes for the company to sell its inventory. A higher DOH value indicates that the company is holding inventory for a longer period before selling it, which can tie up capital and increase the risk of obsolescence.

From 2020 to 2021, Qualcomm's DOH increased significantly from 102.46 days to 82.61 days, indicating a more efficient management of inventory as the company was able to sell its goods faster. However, in 2022, the DOH increased to 124.20 days, suggesting a reversal in inventory management efficiency.

In 2023, the DOH further increased to 147.71 days, reaching a worrisome level, as it indicates that Qualcomm is holding inventory for an extended period before turning it into sales. This could lead to higher carrying costs and potential write-offs due to inventory obsolescence.

The most recent data for 2024 shows Qualcomm's DOH at 137.42 days, still significantly elevated compared to previous years. This ongoing high DOH level may warrant further investigation into the company's inventory management practices to identify areas for improvement and potential efficiency gains.