Wolfspeed Inc (WOLF)

Days of inventory on hand (DOH)

		Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		2.22	2.27	2.55	2.65	3.10	2.94	3.02	3.17	3.12	2.76	2.87	2.94	4.22	5.13	5.68	4.90	6.73	4.87	6.42	6.50
DOH	days	164.64	160.85	143.31	137.87	117.89	124.14	120.87	115.17	116.88	132.43	127.22	124.32	86.46	71.19	64.29	74.54	54.25	75.00	56.82	56.13

June 30, 2024 calculation

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

Wolfspeed Inc's days of inventory on hand (DOH) has shown fluctuations over the historical period provided. DOH represents the number of days a company holds its inventory before selling it, indicating how efficiently the company manages its inventory levels.

Looking at the trend, there is an overall increasing pattern in recent quarters, implying that Wolfspeed Inc may be experiencing challenges in managing its inventory efficiently. Higher DOH values indicate slower inventory turnover, which could result in increased holding costs and lower liquidity.

The significant increase in DOH from 56.13 days in March 2021 to 164.64 days in June 2024 is concerning and suggests a potential issue with inventory management. It is crucial for the company to analyze the reasons behind this increase, such as overstocking, slowing sales, or supply chain disruptions.

On the other hand, there are periods of improvement, as seen in the decrease in DOH from 137.87 days in September 2023 to 117.89 days in June 2023. This indicates a positive effort in managing inventory more effectively during that particular period.

Overall, monitoring and managing DOH is essential for Wolfspeed Inc to optimize its working capital, reduce costs, and enhance overall operational efficiency.