TE Connectivity Ltd (TEL)
Days of inventory on hand (DOH)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.13 | 4.84 | 4.76 | 5.73 | 5.98 | |
| DOH | days | 71.13 | 75.42 | 76.70 | 63.73 | 61.04 |
September 30, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.13
= 71.13
TE Connectivity Ltd's days of inventory on hand (DOH) has shown a fluctuating trend over the past five years. The company's DOH increased from 61.04 days in 2019 to 76.70 days in 2021, indicating a buildup of inventory relative to sales. However, there was a slight decrease in DOH to 75.42 days in 2022 followed by a further decrease to 71.13 days in 2023, which suggests an improvement in inventory management efficiency.
The decrease in DOH from 2021 to 2023 can be interpreted as a positive sign, as it may indicate that TE Connectivity Ltd is managing its inventory more effectively and turning over stock more efficiently. This could lead to reduced carrying costs and potential savings for the company.
Overall, while the trend of TE Connectivity Ltd's DOH has been somewhat volatile, the recent improvements in inventory turnover suggest a positive shift towards better inventory management practices. However, continuous monitoring and optimization of inventory levels will be essential for the company to maintain efficient operations and profitability in the future.
Peer comparison
Sep 30, 2023