Seagate Technology PLC (STX)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.37 | 4.57 | 5.49 | 6.04 | 5.82 | 6.05 | 6.46 | 5.09 | 5.61 | 6.11 | 7.00 | 7.37 | 6.90 | 6.26 | 6.06 | 6.05 | 7.19 | 7.27 | 6.77 | 7.47 | |
| DOH | days | 83.58 | 79.90 | 66.51 | 60.41 | 62.71 | 60.32 | 56.50 | 71.74 | 65.11 | 59.75 | 52.11 | 49.50 | 52.93 | 58.32 | 60.20 | 60.36 | 50.77 | 50.22 | 53.91 | 48.84 |
June 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.37
= 83.58
The Days of Inventory on Hand (DOH) for Seagate Technology PLC has shown variability over the periods analyzed. DOH measures how many days it takes for a company to sell its inventory. A higher DOH may indicate slower inventory turnover, potentially tying up capital and increasing storage costs.
From December 2019 to March 2020, there was a significant increase in DOH, indicating slower inventory turnover. Subsequently, there was a gradual decrease in DOH till March 2021, suggesting improved inventory management.
However, from March 2021 to June 2022, there was an uptrend in DOH, suggesting a potential buildup of inventory. This trend reversed from the second half of 2022 to the first half of 2023, where DOH decreased consistently, indicating more efficient inventory management.
The trend reversed again post the first half of 2023, with an increase in DOH till June 2024. A higher DOH may raise concerns about excess or obsolete inventory, impacting profitability and liquidity.
Overall, Seagate Technology PLC may need to closely monitor its inventory levels to ensure efficient management and avoid potential adverse effects on financial performance.
Peer comparison
Jun 30, 2024