Texas Instruments Incorporated (TXN)

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		1.85	1.76	1.70	1.92	2.27	2.56	2.74	2.88	3.12	3.18	3.12	2.88	2.66	1.60	1.80	2.28	2.62	2.82	2.83	2.81
DOH	days	197.51	207.06	214.55	190.19	160.83	142.54	133.26	126.60	116.81	114.94	117.02	126.74	137.44	227.73	203.08	159.98	139.54	129.41	128.94	129.77

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.85
= 197.51

To analyze the days of inventory on hand (DOH) for Texas Instruments Inc., we look at the trend over the past eight quarters.

The DOH has been steadily increasing over the quarters, indicating a lengthening period of time it takes for the company to sell its inventory. In Q4 2023, the DOH was at 224.56 days, which is significantly higher compared to 221.60 days in Q3 2023 and 214.55 days in Q2 2023.

This trend suggests that Texas Instruments Inc. may be experiencing challenges in managing its inventory efficiently. A high DOH could imply excess inventory levels, slow-moving inventory, or potential obsolescence issues. It may also indicate weaker demand or production inefficiencies.

Furthermore, the significant increase in DOH from Q1 2023 to Q4 2023, where it rose from 190.19 days to 224.56 days, raises concerns about the company's inventory management practices and possible impact on working capital.

Overall, Texas Instruments Inc. needs to closely monitor its inventory levels, streamline its production processes, and assess demand forecasts to improve inventory turnover and optimize working capital management.