Tesla Inc (TSLA)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		5.81	4.72	6.99	6.07	5.77
DOH	days	62.87	77.32	52.25	60.10	63.22

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.81
= 62.87

To analyze Tesla Inc's days of inventory on hand (DOH) over the past five years, we can see a fluctuating trend in the number of days it takes for the company to sell its inventory.

In 2019, the DOH stood at 63.22 days, showing the company had approximately two months of inventory on hand. However, this number decreased to 60.10 days in 2020, indicating a slight improvement in inventory turnover efficiency.

In 2021, there was a significant decrease in the DOH to 52.25 days, implying that the company was able to sell its inventory at a faster rate than in the previous years. However, in 2022, there was an increase to 77.32 days, suggesting a slowdown in the inventory turnover, which may have adverse implications for liquidity and carrying costs.

In the most recent year, 2023, the DOH decreased to 62.87 days, indicating an improvement from the previous year but still higher than the levels seen in 2021 and 2020. This suggests that Tesla Inc may have faced challenges in managing its inventory efficiently, which could lead to higher carrying costs and potential write-downs.

Overall, the fluctuating trend in DOH for Tesla Inc over the past five years indicates potential challenges in managing inventory levels effectively, and further analysis is necessary to understand the underlying factors contributing to these fluctuations and their implications for the company's operations and financial performance.