Telephone and Data Systems Inc (TDS)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		11.67	11.22	9.57	13.89	15.29
DOH	days	31.29	32.53	38.14	26.28	23.88

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.67
= 31.29

The days of inventory on hand (DOH) for Telephone and Data Systems Inc have shown some fluctuations over the years based on the provided data.

As of December 31, 2020, the company had approximately 23.88 days of inventory on hand, indicating that it took around 23.88 days for the company to sell its inventory.

By December 31, 2021, the DOH increased to 26.28 days, suggesting that the company may have been holding onto its inventory for a slightly longer period.

A significant increase was observed by December 31, 2022, with the DOH reaching 38.14 days. This could imply potential inefficiencies in inventory management or changes in demand patterns impacting the sales cycle.

The DOH decreased somewhat by December 31, 2023, to 32.53 days, indicating a possible effort to reduce excess inventory levels or improve inventory turnover.

By December 31, 2024, the DOH decreased further to 31.29 days, signaling a potential improvement in inventory management efficiency compared to the previous year.

Overall, fluctuations in the days of inventory on hand can provide insights into the company's inventory management practices, sales trends, and operational efficiency. It is important for the company to strike a balance between maintaining sufficient inventory levels to meet demand and minimizing excess inventory costs to optimize its working capital and profitability.