Varex Imaging Corp (VREX)
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 | 1.97 | 2.08 | 2.07 | 1.93 | 1.81 | 1.90 | 1.87 | 2.07 | 2.26 | 2.43 | 2.09 | 1.38 | 1.30 | 1.36 | 1.35 | 1.97 | 2.02 | 2.11 | 2.48 | 2.30 | |
| DOH | days | 185.61 | 175.60 | 175.97 | 188.66 | 201.22 | 192.17 | 195.03 | 176.18 | 161.73 | 150.11 | 174.43 | 263.58 | 281.68 | 268.44 | 270.81 | 185.42 | 181.05 | 172.92 | 147.46 | 158.66 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.97
= 185.61
The Days of Inventory on Hand (DOH) for Varex Imaging Corp have fluctuated over the past few years, suggesting varying levels of efficiency in managing inventory. The average DOH over the period indicates that the company held inventory for approximately 200 days, indicating a significant amount of inventory on hand relative to its sales.
However, there are notable variations in DOH, with some quarters showing higher levels of inventory holding (e.g., 281.68 days in Q2 2021) and others showing lower levels (e.g., 147.46 days in Q1 2019). This variability may indicate inconsistencies in inventory management and purchasing practices.
It is important for Varex Imaging Corp to closely monitor and improve its inventory management processes to optimize working capital utilization and reduce carrying costs associated with excess inventory. Implementing better forecasting techniques, streamlining production processes, and adopting lean inventory principles could help the company reduce its DOH and enhance overall operational efficiency.
Peer comparison
Dec 31, 2023