SanDisk Corp (SNDK)
Days of inventory on hand (DOH)
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.09 | 5.10 | 4.36 | 4.49 | 3.78 | |
| DOH | days | 89.31 | 71.57 | 83.66 | 81.26 | 96.54 |
December 31, 2015 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.09
= 89.31
The days of inventory on hand (DOH) ratio for SanDisk Corp has shown some fluctuations over the period from December 31, 2011, to December 31, 2015. In 2011, the company had an inventory turnover rate of 96.54 days, indicating that its inventory was held for approximately 96.54 days before being sold or used.
Over the next few years, there was a slight decrease in the DOH ratio, with the ratio dropping to 81.26 days by the end of 2012 and further to 83.66 days by the end of 2013. This could suggest that the company was improving its inventory management efficiency during this period.
In 2014, there was a more significant decrease in the DOH ratio to 71.57 days, indicating that SanDisk was holding inventory for a shorter period before selling it. However, by the end of 2015, the DOH ratio increased again to 89.31 days, which might indicate a slower rate of inventory turnover compared to the previous year.
Overall, fluctuations in the DOH ratio of SanDisk Corp over the period suggest varying levels of efficiency in managing inventory. It's important for the company to carefully monitor and optimize its inventory levels to ensure that they are neither excessive nor insufficient for operational needs, in order to improve profitability and the efficient use of resources.
Peer comparison
Dec 31, 2015