Veeco Instruments Inc (VECO)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 1.68 | 1.60 | 1.85 | 2.00 | 1.78 | |
| DOH | days | 217.90 | 227.43 | 197.19 | 182.88 | 204.94 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.68
= 217.90
To analyze Veeco Instruments Inc's days of inventory on hand (DOH) over the years:
1. Veeco's DOH has shown some fluctuations in the past few years, ranging from a high of 227.43 days in December 31, 2023 to a low of 182.88 days in December 31, 2021.
2. A high DOH figure indicates that Veeco holds a significant amount of inventory relative to its sales, which may suggest inefficiencies in inventory management or slowing sales.
3. Conversely, a low DOH figure, such as the one seen in December 31, 2021, may indicate efficient inventory turnover and tighter control over inventory levels.
4. It is essential for Veeco to strike a balance between having enough inventory to meet demand without tying up excessive funds in excess inventory.
5. Veeco should continually monitor its DOH metric and strive to optimize inventory levels to improve operational efficiency and financial performance.
6. The trend over the years suggests that Veeco has been working towards better inventory management, as evidenced by the fluctuations in the DOH metric.
7. Further analysis of the drivers behind the changes in the DOH metric, such as demand patterns, production efficiency, and supply chain disruptions, would provide more insights into Veeco's inventory management practices.
Peer comparison
Dec 31, 2024