Texas Instruments Incorporated (TXN)

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		1.45	1.51	1.59	1.60	1.63	1.65	1.70	1.92	2.27	2.56	2.74	2.88	3.12	3.18	3.12	2.88	2.66	2.42	2.33	2.56
DOH	days	252.38	241.24	229.16	227.53	224.56	221.60	214.55	190.19	160.83	142.54	133.26	126.60	116.81	114.94	117.02	126.74	137.44	150.80	156.68	142.60

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.45
= 252.38

The days of inventory on hand (DOH) for Texas Instruments Incorporated have shown a fluctuating trend over the analyzed periods. Starting at 142.60 days on March 31, 2020, the DOH increased gradually, peaking at 252.38 days by December 31, 2024. This suggests that the company may have been experiencing challenges in managing its inventory efficiently during this period.

The significant increase in DOH over time indicates that Texas Instruments may be carrying excess inventory relative to its sales volume, which can tie up valuable resources and lead to increased holding costs. It may also point towards potential issues in demand forecasting, production planning, or inventory management processes within the company.

A high DOH can be a signal of inefficiency and may negatively impact the company's profitability if not addressed. Texas Instruments should focus on optimizing its inventory levels, improving demand forecasting accuracy, streamlining production processes, and implementing effective inventory management strategies to bring down the excessive days of inventory on hand and enhance overall operational efficiency.