Veeco Instruments Inc (VECO)
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 | 2.03 | 1.89 | 1.95 | 2.14 | 2.33 | 2.56 | 2.64 | 2.52 | 2.56 | 2.52 | 2.47 | 2.40 | 2.42 | 2.40 | 2.58 | 2.77 | 2.77 | 2.91 | 2.91 | 4.82 | |
| DOH | days | 179.72 | 193.30 | 186.97 | 170.79 | 156.70 | 142.54 | 138.30 | 144.85 | 142.44 | 144.56 | 147.53 | 152.30 | 150.94 | 152.05 | 141.58 | 131.76 | 131.83 | 125.56 | 125.54 | 75.75 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.03
= 179.72
Veeco Instruments Inc's Days of Inventory on Hand (DOH) measures the average number of days it takes for the company to sell its inventory. A higher DOH indicates that the company is holding onto inventory for a longer period, potentially tying up capital and affecting cash flow.
Over the past eight quarters, Veeco's DOH has shown a fluctuating trend. In Q4 2023, the DOH was 227.43 days, lower than the previous quarter at 244.10 days. This suggests that the company was able to sell its inventory more quickly in Q4 2023. Comparing year-over-year, the DOH has generally increased from Q1 2022 to Q3 2023, indicating a potential inefficiency in managing inventory levels.
It is important for Veeco to closely monitor its inventory management practices to optimize working capital and cash flow. A downward trend in DOH could indicate improved efficiency in inventory turnover, while a sustained high DOH may require a reassessment of inventory levels and sales strategies.
Peer comparison
Dec 31, 2023