Synnex Corporation (SNX)

Days of inventory on hand (DOH)

		Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 31, 2019	Feb 28, 2019
Inventory turnover		7.54	7.79	7.60	6.93	6.45	5.94	5.74	5.02	4.47	7.26	7.79	7.66	7.00	10.32	8.17	7.81	7.03	2.40	4.06	6.13
DOH	days	48.41	46.84	48.00	52.63	56.62	61.47	63.63	72.68	81.57	50.28	46.83	47.63	52.16	35.37	44.66	46.73	51.90	152.20	89.89	59.58

February 29, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.54
= 48.41

Days of Inventory on Hand (DOH) is a crucial efficiency ratio that measures how quickly a company is able to turn its inventory into sales. A lower DOH indicates that the company is selling its inventory quickly and efficiently.

Analyzing Synnex Corporation's historical DOH data, we observe fluctuations in the ratio over the periods. In recent periods, such as Feb 29, 2024, Nov 30, 2023, and Aug 31, 2023, the company has managed to reduce its DOH to around 48 days, indicating an improvement in inventory management efficiency.

However, looking back further, we see spikes in DOH in periods like Nov 30, 2022, and Aug 31, 2022, where the ratio exceeded 60 days, suggesting potential inventory management challenges at those times.

The company's DOH reached its peak at 152.20 days on Feb 28, 2019, which could be a red flag indicating excess inventory levels or difficulties in selling products efficiently.

Overall, Synnex Corporation's trend in DOH shows variability, with periods of improvement in inventory turnover efficiency alongside instances of elevated DOH levels. Further analysis of the underlying reasons behind these fluctuations would provide valuable insights into the company's inventory management practices and overall operational effectiveness.