Teledyne Technologies Incorporated (TDY)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		3.54	3.48	3.51	3.68	5.49
DOH	days	103.16	104.80	103.92	99.11	66.53

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.54
= 103.16

Teledyne Technologies Incorporated's days of inventory on hand (DOH) has shown an increasing trend over the past five years based on the provided data. The company had 66.53 days of inventory on hand as of December 31, 2020, which increased to 99.11 days by December 31, 2021. Subsequently, the DOH continued to rise to 103.92 days by December 31, 2022, and further increased to 104.80 days by December 31, 2023. However, there was a slight decrease to 103.16 days by December 31, 2024.

The increasing trend in DOH indicates that Teledyne Technologies has been holding onto its inventory for a longer period before selling it. This may suggest issues such as overstocking, slow-moving inventory, or challenges in managing inventory levels efficiently. While a slight decrease by the end of 2024 may indicate efforts to optimize inventory management, the overall trend warrants attention to ensure efficient working capital utilization and avoid potential risks associated with excess inventory. Further analysis of Teledyne's inventory turnover ratio and comparison with industry benchmarks could provide additional insights into the effectiveness of the company's inventory management practices.