Synnex Corporation (SNX)

Days of inventory on hand (DOH)

		Nov 30, 2024	Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020
Inventory turnover		6.57	7.50	6.45	4.47	7.00
DOH	days	55.53	48.67	56.62	81.57	52.16

November 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.57
= 55.53

Over the past five years, Synnex Corporation's days of inventory on hand (DOH) has exhibited some fluctuations. The DOH stood at 52.16 days as of November 30, 2020, indicating the number of days it would take for the company to sell its current inventory.

By November 30, 2021, the DOH had increased significantly to 81.57 days, suggesting a longer time period for inventory turnover. This could imply potential issues such as overstocking or challenges in matching inventory levels with demand.

Subsequently, there was a decrease in the DOH to 56.62 days by November 30, 2022, before declining further to 48.67 days by November 30, 2023. These decreases may indicate improvements in inventory management efficiency, potentially leading to better control over inventory levels and quicker turnover.

However, by November 30, 2024, the DOH had increased slightly to 55.53 days, indicating a modest slowdown in inventory turnover compared to the previous year. It is important for the company to monitor this metric closely to ensure optimal inventory management and avoid potential issues such as carrying excess inventory or facing stockouts.

Overall, Synnex Corporation should continue to focus on maintaining an optimal balance in inventory levels to support its operations efficiently and effectively manage working capital. Regular monitoring and analysis of the DOH can provide valuable insights into the company's inventory management performance over time.