Qualcomm Incorporated (QCOM)

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		2.58	2.47	2.54	2.61	2.65	2.94	3.27	3.58	3.90	4.42	4.18	4.41	4.17	3.56	3.67	5.08	6.00	6.14	5.26	5.63
DOH	days	141.30	147.71	143.51	139.99	137.69	124.20	111.70	102.05	93.48	82.61	87.35	82.76	87.61	102.45	99.35	71.80	60.80	59.43	69.39	64.86

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.58
= 141.30

Days of Inventory on Hand (DOH) is a measure of how long a company holds inventory before selling it. A higher DOH indicates that the company takes longer to sell its inventory, which may lead to higher storage and holding costs. Qualcomm's DOH has fluctuated over the past few years, ranging from a low of 59.43 days in March 2019 to a high of 147.71 days in September 2023.

The trend in Qualcomm's DOH has shown some volatility, with peaks and troughs observed over the periods analyzed. In recent quarters, the company's DOH has generally been on the higher side, indicating a longer time taken to convert inventory into sales. This may raise concerns about potential inventory management issues or a slowdown in product demand.

It is essential for Qualcomm to monitor and manage its inventory levels effectively to optimize cash flow, reduce storage costs, and avoid obsolescence. A high DOH may indicate inefficiencies in the supply chain or production process, potentially impacting the company's profitability and overall financial performance. Additionally, a high DOH may suggest a need for Qualcomm to review its inventory management practices and make strategic adjustments to achieve a more optimal balance between inventory levels and sales turnover.