Vishay Intertechnology Inc (VSH)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.75 | 3.94 | 4.39 | 4.28 | 4.63 | |
| DOH | days | 97.36 | 92.64 | 83.24 | 85.21 | 78.90 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.75
= 97.36
The days of inventory on hand (DOH) for Vishay Intertechnology, Inc. has shown an increasing trend over the past five years, indicating that the company is taking longer to sell its inventory. The DOH was 97.36 days at the end of 2023, compared to 92.64 days in 2022, 83.24 days in 2021, 85.21 days in 2020, and 78.90 days in 2019.
A higher DOH ratio suggests that inventory levels are elevated relative to sales, which can lead to increased storage costs, obsolescence risk, and reduced liquidity. Vishay Intertechnology may need to evaluate its inventory management practices to optimize its inventory turnover and reduce the number of days inventory is held on hand.
Furthermore, the increasing trend in DOH could also indicate potential inefficiencies in the company's supply chain or production processes. Management should closely monitor and address the factors contributing to the extended DOH to improve operational efficiency and financial performance.
Peer comparison
Dec 31, 2023