Vishay Intertechnology Inc (VSH)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.35 | 3.75 | 3.94 | 4.39 | 4.28 | |
| DOH | days | 108.87 | 97.36 | 92.64 | 83.24 | 85.21 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.35
= 108.87
Vishay Intertechnology Inc's days of inventory on hand (DOH) have shown a slight fluctuation over the past five years. In 2020, the company had 85.21 days of inventory on hand, which decreased marginally to 83.24 days by the end of 2021. However, in the subsequent years, the DOH increased, reaching 92.64 days by the end of 2022, 97.36 days by the end of 2023, and 108.87 days by the end of 2024.
A higher number of days of inventory on hand could indicate that Vishay Intertechnology Inc is carrying excess inventory or possibly facing challenges in selling its products efficiently. This could tie up the company's working capital and increase holding costs. Management may need to review its inventory management practices to optimize the level of inventory on hand and ensure efficient operations.
It is essential for the company to strike a balance between having enough inventory to meet customer demand without carrying excessive levels that could impact profitability. Monitoring and managing the DOH ratio effectively will be crucial for Vishay Intertechnology Inc to enhance operational efficiency and financial performance in the future.
Peer comparison
Dec 31, 2024