AbbVie Inc (ABBV)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		4.04	4.98	4.87	5.58	4.65
DOH	days	90.28	73.29	75.02	65.44	78.52

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.04
= 90.28

AbbVie Inc's Days of Inventory on Hand (DOH) has shown fluctuations over the past five years. The company's DOH decreased from 78.52 days as of December 31, 2020, to 65.44 days by December 31, 2021, indicating more efficient management of inventory during that period. However, the DOH increased to 75.02 days by December 31, 2022, before slightly decreasing to 73.29 days by December 31, 2023. The latest data shows a significant increase in the DOH to 90.28 days as of December 31, 2024, suggesting a potential buildup of inventory.

A high DOH may indicate excess or obsolete inventory, which could tie up the company's resources and lead to higher holding costs. On the other hand, a low DOH may signal potential stockouts or production inefficiencies. It is essential for AbbVie Inc to strike a balance in managing its inventory levels to optimize working capital and operational efficiency. Further analysis of the company's inventory turnover ratio and comparison with industry benchmarks could provide additional insights into its inventory management effectiveness.