Vicor Corporation (VICR)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.68 | 3.01 | 3.72 | 3.99 | 4.12 | |
| DOH | days | 136.06 | 121.42 | 98.00 | 91.52 | 88.58 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.68
= 136.06
The days of inventory on hand (DOH) for Vicor Corp. have shown an increasing trend over the past five years. In particular, the DOH has risen from 128.23 days in 2019 to 194.38 days in 2023. This indicates that, on average, Vicor Corp. held inventory for a longer period before selling it during the most recent year.
A higher DOH could suggest inefficiencies in managing inventory, such as overstocking or slow turnover of inventory. It may also tie up working capital and result in higher carrying costs. Further investigation into the reasons behind the increase in DOH would be necessary to determine if it is a concerning trend or a strategic choice by the company to optimize operations.
Overall, the rising trend in DOH for Vicor Corp. warrants attention and evaluation to ensure effective inventory management practices and to identify potential opportunities for improvement in operational efficiency.
Peer comparison
Dec 31, 2023