Qorvo Inc (QRVO)

Days of inventory on hand (DOH)

		Mar 31, 2025	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
Inventory turnover		3.36	3.41	3.46	3.32	3.21	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
DOH	days	108.51	106.95	105.57	109.88	113.69	120.72	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

March 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.36
= 108.51

By analyzing the days of inventory on hand (DOH) of Qorvo Inc over the past few years, we observe fluctuations in the efficiency of managing its inventory levels.

The trend indicates an increase in DOH from June 30, 2020 (100.72 days) to a peak of 168.14 days on June 30, 2023, signaling a possible issue with inventory management efficiency during this period. Subsequently, there was a notable decline in DOH, reaching 108.51 days by March 31, 2025.

A higher DOH value suggests that Qorvo Inc is taking longer to sell its inventory, which may lead to higher carrying costs, potential obsolescence risks, and reduced liquidity. Conversely, a lower DOH implies quicker turnover of inventory, indicating effective management and cost control.

It is essential for Qorvo Inc to maintain an optimal balance in inventory levels to avoid overstocking or stockouts, ensuring efficient operations and favorable financial performance. Further analysis and monitoring of inventory management practices will be crucial to sustaining profitability and competitiveness in the market.