Qorvo Inc (QRVO)

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		3.37	3.42	3.28	3.17	3.02	2.36	2.17	2.80	2.74	2.90	2.90	3.12	3.25	3.85	3.92	4.20	4.25	4.16	3.62	3.71
DOH	days	108.33	106.85	111.20	115.14	120.74	154.35	168.14	130.42	133.14	125.74	125.96	116.91	112.32	94.86	93.14	86.94	85.79	87.75	100.72	98.46

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.37
= 108.33

Days of inventory on hand (DOH) for Qorvo Inc has shown some fluctuations over the periods analyzed. The trend indicates that the company maintained an average DOH of around 100 days initially but saw a gradual increase in this metric in recent quarters. From March 31, 2022, the DOH started rising significantly, reaching a peak of 168.14 days on June 30, 2023. Subsequently, the DOH declined and stabilized around the 100 to 120-day range.

A high DOH can indicate slower inventory turnover, potentially tying up capital in excess inventory. It could also suggest issues with demand forecasting or inventory management. On the other hand, a low DOH could point to potential stockouts that may lead to lost sales.

It is crucial for Qorvo Inc to strike a balance in managing its inventory levels efficiently to ensure optimal utilization of resources while meeting customer demands effectively. Monitoring and adjusting inventory levels based on demand fluctuations will be critical to improving working capital management and overall operational efficiency.