Wolfspeed Inc (WOLF)

Days of inventory on hand (DOH)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Inventory turnover		2.22	3.10	3.12	3.33	7.19
DOH	days	164.64	117.91	116.88	109.64	50.75

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.22
= 164.64

The days of inventory on hand (DOH) for Wolfspeed Inc have exhibited a fluctuating trend over the past five years. In particular, there has been a notable increase in the DOH from 50.75 days in 2020 to 164.64 days in 2024. This indicates that, on average, Wolfspeed held inventory for a longer period in 2024 compared to previous years.

A higher DOH could suggest inefficiencies in inventory management, potentially leading to increased storage costs and risks of obsolescence. It may also indicate challenges in accurately forecasting demand or issues related to production scheduling.

It is essential for Wolfspeed to closely monitor and effectively manage its inventory levels to optimize working capital, minimize carrying costs, and ensure product availability. Further analysis of the company's supply chain, production processes, and demand forecasting methods may be necessary to address any underlying issues contributing to the significant increase in DOH seen in 2024.