Sensata Technologies Holding NV (ST)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover		4.68	4.39	4.08	3.96	3.97	4.04	4.20	4.14	4.21	3.93	3.95	4.00	4.32	4.59	4.83	4.67	4.70	4.71	4.28	4.38
DOH	days	77.99	83.20	89.46	92.29	91.98	90.27	86.95	88.20	86.79	92.81	92.46	91.35	84.45	79.50	75.53	78.15	77.68	77.43	85.36	83.31

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.68
= 77.99

The days of inventory on hand (DOH) for Sensata Technologies Holding NV has exhibited some fluctuations over the reported periods.

From December 31, 2020, to June 30, 2021, there was a gradual decrease in DOH, indicating the company was able to turn over its inventory more quickly during this time. However, from June 30, 2021, to December 31, 2021, there was a noticeable increase in DOH, suggesting a slowdown in inventory turnover.

The DOH continued to rise from December 31, 2021, reaching a peak of 92.81 days on September 30, 2022. This prolonged holding period may imply potential issues such as excess inventory or lower demand for the company's products.

Subsequently, there was a slight decrease in DOH from September 30, 2022, to September 30, 2024, with some fluctuations in between. This trend indicates some improvement in inventory management efficiency over time.

Overall, it's essential for Sensata Technologies to closely monitor its inventory levels and strive to strike a balance between holding enough inventory to meet demand and avoiding excess inventory accumulation that can tie up capital and lead to higher storage costs. Periodic review and adjustment of inventory management practices will be crucial for maintaining optimal operational performance.