Sanmina Corporation (SANM)

Days of inventory on hand (DOH)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Inventory turnover		4.98	5.72	4.32	5.98	7.47
DOH	days	73.24	63.79	84.57	61.03	48.86

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.98
= 73.24

The days of inventory on hand (DOH) for Sanmina Corporation has shown variability over the past five years. In the fiscal year ending September 30, 2024, the company reported a DOH of 73.24 days, which represents an increase from the previous year's DOH of 63.79 days. This uptick suggests that Sanmina may be carrying more inventory relative to its sales volume, potentially indicating challenges in managing inventory levels efficiently.

Comparing the DOH to earlier years, in the fiscal year ending September 30, 2022, Sanmina recorded a relatively high DOH of 84.57 days, implying a longer period of time required to sell off inventory. This could point towards potential issues such as overstocking or slower inventory turnover.

On the other hand, in the fiscal years ending September 30, 2021 and 2020, the company showcased lower DOH figures of 61.03 days and 48.86 days, respectively. These lower numbers suggest that Sanmina improved its inventory management efficiency during those periods, with a shorter time taken to convert inventory into sales.

Overall, the trend in Sanmina's DOH indicates fluctuations in inventory management effectiveness over the years, with recent data showing an increase in the number of days inventory is held on hand. This metric is crucial as it impacts working capital and profitability, highlighting the importance for the company to focus on optimizing its inventory levels to enhance operational efficiency and financial performance.