Synopsys Inc (SNPS)

Days of inventory on hand (DOH)

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Inventory turnover		3.31	3.75	4.15	4.43	4.94	5.02	4.62	4.45	4.28	3.76	3.53	3.65	3.51	4.13	4.71	4.49	5.09	5.32	4.90	4.57
DOH	days	110.26	97.24	88.03	82.37	73.89	72.72	78.96	82.08	85.33	97.00	103.34	100.02	104.07	88.34	77.48	81.38	71.77	68.60	74.42	79.93

January 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.31
= 110.26

The days of inventory on hand (DOH) for Synopsys, Inc. has shown some fluctuations over the past quarters. In the most recent quarter, Q1 2024, the company held inventory for an average of 110.26 days, which is higher than the previous quarter at 97.24 days. This increase suggests that the company is carrying inventory for a longer period, which may tie up capital and potentially indicate inefficiencies in inventory management.

Looking at a longer trend, the DOH has generally been increasing since Q2 2022, where it was at 78.96 days. This gradual increase could indicate potential issues such as slower inventory turnover, overstocking, or declining sales.

It is important for the company to closely monitor and manage its inventory levels to optimize working capital, reduce carrying costs, and ensure the efficient use of resources. Analyzing the DOH in conjunction with other financial ratios and operational metrics can provide a more comprehensive view of Synopsys, Inc.'s performance and financial health.