Silicon Laboratories Inc (SLAB)

Days of inventory on hand (DOH)

		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	Mar 31, 2020
Inventory turnover		2.58	1.71	1.49	1.41	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
DOH	days	141.66	212.95	244.68	258.33	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

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.58
= 141.66

The days of inventory on hand (DOH) for Silicon Laboratories Inc have shown fluctuations over the periods analyzed. The company's DOH ranged from a low of 60.91 days on December 31, 2021, to a high of 258.33 days on March 31, 2024.

Significant observations include an increase in DOH from September 30, 2022, to December 31, 2023, indicating that the company may have been holding inventory for a longer period. This trend continued into the first half of 2024, with DOH exceeding 200 days, which may suggest potential inefficiencies in inventory management.

It is essential for the company to monitor and effectively manage its inventory levels to ensure optimal utilization of resources and maintain liquidity. High DOH can tie up capital and increase carrying costs, while low DOH may risk stockouts and the inability to meet customer demand. Periodic adjustments to inventory levels and supply chain processes may be necessary to strike a balance between efficiency and customer service.