Teradyne Inc (TER)

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		3.93	3.90	1.52	3.60	3.66	1.31	3.45	3.55	3.96	4.29	4.64	5.69	6.15	6.45	6.32	5.17	6.01	6.78	5.70	5.72
DOH	days	92.89	93.65	240.41	101.26	99.61	277.62	105.79	102.73	92.11	84.99	78.63	64.10	59.36	56.55	57.78	70.60	60.72	53.80	64.05	63.76

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.93
= 92.89

Teradyne Inc's Days of Inventory on Hand (DOH) provides insight into how efficiently the company manages its inventory levels. Over the analyzed period, Teradyne's DOH fluctuated significantly, ranging from a low of 53.80 days to a high of 277.62 days.

The trend in Teradyne's DOH indicates some fluctuations in the company's inventory management efficiency. From September 30, 2023, to March 31, 2024, there was a noticeable spike in DOH, reaching its peak at 277.62 days on September 30, 2023. This significant increase may suggest potential issues such as overstocking, obsolete inventory, or slowing sales.

Subsequently, there was a decrease in DOH by June 30, 2024, indicating that the company took measures to improve its inventory management. However, the DOH remained relatively high compared to previous periods, suggesting ongoing challenges in optimizing inventory levels.

Overall, the trend in Teradyne's DOH highlights the importance of effective inventory management to maintain optimal levels and avoid excess holding costs or potential liquidity issues due to inventory build-up. Continued monitoring and adjustment of inventory policies may be necessary for Teradyne to enhance operational efficiency and financial performance.