Texas Instruments Incorporated (TXN)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		2.08	2.27	3.12	2.66	2.61
DOH	days	175.33	160.83	116.81	137.44	139.94

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.08
= 175.33

The Days of Inventory on Hand (DOH) for Texas Instruments Inc. has shown a fluctuating trend over the past five years. In 2023, the company had an elevated level of inventory on hand, with the DOH standing at 224.56 days. This indicates that on average, it takes Texas Instruments approximately 224.56 days to sell its inventory.

Comparing this to previous years, we see a notable increase from 2022 when the DOH was 160.83 days. This suggests a slower inventory turnover rate in 2023, potentially indicating inefficiencies in inventory management or challenges in sales demand.

In 2021, the DOH was lower at 116.81 days, showcasing a significant improvement in inventory turnover efficiency compared to 2020 when the DOH was 137.44 days. However, both 2021 and 2020 had a lower DOH compared to 2019 when it stood at 139.94 days.

Overall, the trend in the DOH for Texas Instruments Inc. indicates fluctuations in inventory management efficiency over the past five years, with the need for a closer examination of the underlying factors driving these variations. It may be important for the company to implement strategies to optimize inventory levels and improve inventory turnover in order to enhance operational performance and profitability.