Sensata Technologies Holding NV (ST)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		4.52	3.91	4.21	4.32	4.70
DOH	days	80.76	93.25	86.79	84.45	77.68

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.52
= 80.76

The days of inventory on hand (DOH) for Sensata Technologies Holding NV have shown an upward trend over the past five years. In December 2020, the company had an inventory turnover rate equivalent to 77.68 days, which increased to 84.45 days by the end of December 2021. This trend continued, reaching 86.79 days by December 2022, 93.25 days by December 2023, and then decreased slightly to 80.76 days as of December 31, 2024.

A higher DOH indicates that the company is holding onto its inventory for a longer period before selling it. This may imply inefficiencies in inventory management, such as overstocking or slow-moving inventory, which can tie up capital and lead to increased storage costs.

It is important for Sensata Technologies Holding NV to closely monitor its inventory levels and streamline its inventory management processes to ensure optimal utilization of resources and maximize profitability. Additionally, the company may need to implement strategies to improve inventory turnover and optimize its supply chain to maintain a healthy balance between inventory levels and sales.