Silicon Laboratories Inc (SLAB)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		1.66	3.80	5.99	4.51	2.65
DOH	days	220.47	96.06	60.91	80.85	137.76

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.66
= 220.47

Silicon Laboratories Inc's days of inventory on hand (DOH) has shown a fluctuating trend over the past five years. In 2023, the company had 220.47 days of inventory on hand, significantly higher than the levels observed in the previous years. This may indicate an increase in excess inventory or potential issues with inventory management efficiency.

In 2022, the DOH was 96.06 days, showing a sharp decrease from the prior year. This could suggest an improvement in inventory turnover and management practices. In 2021, the DOH was 60.91 days, reflecting a further reduction in the time it takes to sell inventory compared to the preceding year.

The year 2020 saw a slight increase in DOH to 80.85 days from 2019, where it was 137.76 days. This suggests that the company may have had difficulty selling inventory efficiently in 2019, leading to an accumulation of inventory on hand.

Overall, the analysis of Silicon Laboratories Inc's DOH highlights the importance of effective inventory management in optimizing working capital and operational efficiency. The company should continue monitoring and improving its inventory turnover to achieve a balance between maintaining sufficient inventory levels and avoiding excess stock.