Littelfuse, Inc. (NASDAQ:LFUS) Q2 2023 Earnings Call Transcript

David Williams: Hey thanks for letting me ask another question. Meenal, I just want to ask quickly on the cash cycle. It looks like that peak maybe last quarter and it come down a bit this quarter. But just kind of thinking about your internal inventory levels where you’re comfortable, where do you think that number should be as you’re thinking about working capital and just getting that right size on your internal inventories? Thanks.

Meenal Sethna: Yes. So, there’s a lot of work that our teams have been doing around inventories. Our days right now are somewhere in about the 120, 130 days. I would expect that over time, as we continue to work that down, we get back closer to the 100-day mark and even lower over time. That’s really where we were pre-pandemic as we adjust our — as we think about adjusting our supply chain. I think the other thing I would add is some of that also comes with acquisitions, right? Typically, a big part of our synergies also come from working capital management, whether that’s really the focus around day sales, DSO, and inventory level. So, that’s all the work that we’re doing as it relates to areas like the C&K and the Carling acquisition. So, absolutely, we’re making good progress and more to go on that.

David Williams: Okay. Thank you.

Trisha Tuntland: Appreciate your follow-up question, David. That concludes our Q&A session. Thank you for joining us on today’s call and your interest in Littelfuse. We look forward to talking with you again soon. Have a wonderful day.