Silicon Laboratories Inc (SLAB)

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		1.66	2.26	2.74	2.98	3.80	4.10	4.50	5.54	5.99	4.68	4.94	2.94	5.28	2.16	2.50	3.04	2.65	4.57	4.49	4.79
DOH	days	220.47	161.48	133.36	122.67	96.06	89.09	81.03	65.92	60.91	78.03	73.82	124.13	69.15	168.64	145.92	120.16	137.76	79.90	81.25	76.13

December 31, 2023 calculation

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

Days of Inventory on Hand (DOH) is a crucial ratio that indicates how efficiently a company manages its inventory. Silicon Laboratories Inc's DOH has shown fluctuating trends over the past few years. The company's average DOH has been around 110 days, with a range between 60 to 220 days.

The highest DOH of 220.47 days was recorded on Dec 31, 2023, indicating a longer period that inventory is sitting on hand before being sold. This may suggest overstocking or slow-moving inventory, which could tie up capital and lead to potential obsolescence risks.

On the other hand, the lowest DOH was 60.91 days on Dec 31, 2021, which indicates efficient inventory management and a quicker turnover of goods. A lower DOH typically signifies better inventory control, a leaner supply chain, and healthier cash flow.

Overall, it is essential for Silicon Laboratories Inc to closely monitor its DOH and strive to strike a balance between avoiding stockouts and minimizing excess inventory levels to optimize working capital and improve overall operational efficiency.