Synnex Corporation (SNX)

Days of inventory on hand (DOH)

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Inventory turnover		7.50	6.45	4.47	7.00	7.03
DOH	days	48.67	56.62	81.57	52.16	51.90

November 30, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.50
= 48.67

Days of Inventory on Hand (DOH) measures the average number of days it takes for a company to sell its inventory. Lower DOH values are generally preferred as they signify efficient inventory management.

In the case of TD Synnex Corp, the trend in DOH over the past five years has been somewhat erratic. In 2023, the DOH decreased to 48.67 days compared to 56.62 days in 2022. This reduction suggests an improvement in inventory management efficiency. However, it is still higher than the 44.89 days recorded in 2020 and 44.57 days in 2019.

The significantly higher DOH of 81.57 days in 2021 may indicate potential inventory management challenges during that period. It is important to investigate the reasons behind such a substantial increase and determine if corrective actions have been implemented.

Overall, TD Synnex Corp's inventory management, as indicated by the DOH, has been somewhat inconsistent over the past five years, with 2023 showing relative improvement. It would be beneficial for the company to continue analyzing and addressing inventory management practices to maintain efficiency and optimize working capital.