Sanmina Corporation (SANM)

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		5.71	5.68	5.71	5.37	3.62	3.40	3.26	3.32	5.06	6.03	7.26	8.26	7.74	7.47	7.31	7.72	8.66	8.49	8.36	7.41
DOH	days	63.91	64.28	63.98	68.03	100.71	107.51	111.92	109.90	72.14	60.53	50.25	44.17	47.15	48.86	49.91	47.31	42.14	43.01	43.68	49.23

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.71
= 63.91

The Days of Inventory on Hand (DOH) for Sanmina Corporation have shown some fluctuations over the past few quarters. The trend indicates that the company has been able to manage its inventory levels more efficiently in recent quarters compared to the high levels observed at the end of 2022 and the beginning of 2023.

The DOH was relatively high in the fourth quarter of 2022 and the first quarter of 2023, exceeding 100 days, which may indicate excess inventory or slower inventory turnover during that period. However, there seems to be an improvement in inventory management as the DOH decreased significantly in subsequent quarters, dropping to around 42-50 days by the second quarter of 2023.

From the second quarter of 2023 onwards, the DOH levels have been relatively stable, ranging between 60 to 70 days, suggesting a more consistent inventory management approach by the company. It is important for Sanmina Corporation to strike a balance in managing its inventory levels to avoid tying up too much capital in inventory while ensuring that it can meet customer demand promptly.

Overall, while the company experienced some challenges in inventory management in the past, the recent trend indicates a more controlled approach towards managing inventory, which is crucial for operational efficiency and financial performance.