Teradata Corp (TDC)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		113.00	187.25	58.69	57.17	55.48
DOH	days	3.23	1.95	6.22	6.38	6.58

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 113.00
= 3.23

The Days of Inventory on Hand (DOH) is a measure that indicates the average number of days a company holds its inventory before selling it. Looking at the trend for Teradata Corp over the past five years, we observe fluctuations in its inventory management efficiency.

In 2023, Teradata Corp had 6.61 days of inventory on hand, a significant increase from the prior year's 4.09 days. This suggests that the company is holding onto its inventory for a longer period in 2023 compared to 2022, which may tie up capital and impact liquidity.

In 2021, the DOH was notably higher at 12.98 days, indicating slower inventory turnover compared to 2020 and 2019 when the DOH ranged around 12.96 to 11.99 days. This suggests a potential issue with managing inventory levels efficiently in 2021.

Overall, the fluctuating trend in Teradata Corp's DOH over the past five years indicates variability in inventory management practices. It is essential for the company to closely monitor and optimize its inventory turnover rate to ensure efficient operations and maintain healthy liquidity levels.