Tesla Inc (TSLA)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		5.81	5.61	5.14	4.60	4.72	5.32	6.04	6.78	6.99	6.93	6.89	6.86	6.07	5.27	5.13	4.74	5.77	5.67	6.06	4.81
DOH	days	62.87	65.10	70.98	79.34	77.32	68.61	60.44	53.87	52.25	52.68	52.94	53.24	60.10	69.28	71.11	77.06	63.22	64.39	60.26	75.94

December 31, 2023 calculation

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

Days of Inventory on Hand (DOH) indicates the average number of days it takes for a company to sell its inventory. A lower DOH value is generally preferred, as it suggests that the company is able to efficiently manage and sell its inventory.

Analyzing the historical DOH of Tesla Inc, we observe fluctuations in the trend. The DOH increased from 53.87 days on March 31, 2022, to 79.34 days on March 31, 2023. This significant increase indicates a potential slowdown in inventory turnover, which could be a concern for the company's operational efficiency.

It is worth noting that over the past eight quarters, the DOH has generally exhibited an upward trend, with occasional fluctuations. This trend suggests a potential challenge in effectively managing and selling the company's inventory. It may also indicate potential challenges in demand forecasting or inventory control.

Investors and analysts may view the increasing DOH as a signal to further investigate Tesla Inc's inventory management practices and assess whether there are opportunities to optimize inventory levels and improve operational efficiency. Additionally, continued monitoring of the DOH trend will be essential to assess whether the company is able to address any potential inventory management issues.