Viavi Solutions Inc (VIAV)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019
Inventory turnover		4.40	4.21	3.77	3.92	4.02	3.84	4.20	4.63	4.71	4.50	4.42	4.87	5.11	5.17	5.18	5.28	5.65	5.51	5.24	4.89
DOH	days	82.97	86.62	96.71	93.01	90.68	94.96	86.83	78.77	77.45	81.09	82.60	74.89	71.49	70.58	70.52	69.14	64.55	66.27	69.66	74.62

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.40
= 82.97

The days of inventory on hand (DOH) for Viavi Solutions Inc have fluctuated over the past few quarters. The trend shows that DOH increased from the end of 2019 to early 2020, reaching a peak of 74.62 days in March 2020. Subsequently, the DOH decreased steadily until the end of 2020. From the beginning of 2021 to mid-2022, there was a slight increase in DOH before trending downwards again.

However, in the most recent quarters, DOH has been on an increasing trend, reaching its highest level of 96.71 days in December 2023. This may indicate that the company is carrying more inventory on hand relative to its sales, which could tie up capital and potentially lead to increased storage costs or obsolescence risk.

It would be prudent for the company to closely monitor and manage its inventory levels to optimize working capital efficiency and ensure that inventory turnover remains healthy. Additionally, a higher DOH could be a sign of potential operational inefficiencies or changing market dynamics that may require further investigation and strategic adjustments.