Telephone and Data Systems Inc (TDS)

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		14.21	15.83	18.21	13.62	11.22	13.20	11.69	9.58	9.57	10.21	11.64	13.36	13.88	17.40	13.02	16.61	15.29	14.11	15.28	10.68
DOH	days	25.68	23.05	20.04	26.79	32.53	27.65	31.22	38.10	38.14	35.75	31.36	27.31	26.29	20.98	28.03	21.98	23.87	25.87	23.88	34.16

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 14.21
= 25.68

The days of inventory on hand (DOH) for Telephone and Data Systems Inc has shown fluctuations over the analyzed periods. The trend indicates a decrease in DOH from March 2020 to September 2021, with the lowest DOH observed in March 2021. This suggests an improvement in inventory management efficiency during this period.

However, from September 2021 to December 2024, the DOH started to increase, reaching a peak in December 2023. This may indicate a potential buildup of inventory relative to sales during this period. It is crucial for the company to monitor and manage its inventory levels effectively to avoid issues such as carrying excess inventory that could tie up resources.

The downward trend from December 2023 to June 2024 shows a positive sign as it indicates a reduction in the DOH, which could signal improved inventory turnover efficiency. Nonetheless, the slight increase in DOH in September 2024 suggests that there may be fluctuations in inventory management strategies that need to be addressed by optimizing inventory levels and enhancing demand forecasting.

Overall, an in-depth analysis of the factors contributing to the fluctuations in DOH, such as changes in sales patterns, supply chain disruptions, or inventory management practices, would be beneficial for Telephone and Data Systems Inc to maintain an optimal balance between inventory levels and operational efficiency.