TE Connectivity Ltd (TEL)
Days of inventory on hand (DOH)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.94 | 5.13 | 4.84 | 4.76 | 5.73 | |
| DOH | days | 73.90 | 71.13 | 75.42 | 76.70 | 63.73 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.94
= 73.90
TE Connectivity Ltd's Days of Inventory on Hand (DOH) have shown some variation over the past five years. In Sep 2024, the DOH stands at 73.90 days, which is higher compared to the previous year where it was 71.13 days. This indicates that TE Connectivity Ltd is holding inventory for a slightly longer period in 2024 than in 2023.
Looking at the trend over five years, it is observed that the DOH has fluctuated within a range. There was a slight increase in DOH from 2020 to 2021, followed by a decrease in 2022. However, in the most recent year of 2024, there has been an uptick in the DOH. This may suggest a change in the company's inventory management practices or market demand dynamics.
Overall, a DOH of around 73.90 days in 2024 implies that TE Connectivity Ltd is holding inventory for approximately 73.90 days before it is sold or consumed. It is important for the company to strike a balance in inventory levels to ensure efficient operations and optimal working capital management. Further analysis and comparison with industry benchmarks would provide more insights into the effectiveness of TE Connectivity Ltd's inventory management strategy.
Peer comparison
Sep 30, 2024