AbbVie Inc (ABBV)

Days of inventory on hand (DOH)

		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	Jun 30, 2019	Mar 31, 2019
Inventory turnover		8.99	8.87	8.52	9.48	9.97	11.30	10.04	9.31	10.37	10.60	9.87	9.90	8.28	7.12	4.10	5.34	4.10	3.86	3.89	4.40
DOH	days	40.60	41.14	42.83	38.51	36.61	32.31	36.34	39.22	35.19	34.42	36.97	36.88	44.07	51.26	88.92	68.38	88.96	94.44	93.85	83.00

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.99
= 40.60

AbbVie Inc's Days of Inventory on Hand (DOH) for Q4 2023 stood at 73.29 days, which decreased compared to the previous quarter (Q3 2023) when it was 76.96 days. However, when compared to the same quarter of the previous year (Q4 2022), the DOH has increased from 75.02 days to 73.29 days. This indicates that the company is maintaining its inventory for a slightly shorter period.

Further analysis shows variability in inventory management efficiency over the past four quarters. The DOH was relatively high in Q2 2023 at 84.97 days but decreased in Q3 2023 to 76.96 days before further declining in Q4 2023 to 73.29 days. This fluctuation may reflect changes in sales patterns, production efficiency, or inventory management strategies within AbbVie.

Comparing the current DOH figures to the same quarters of the previous year, we observe a slight improvement, reinforcing the notion that the company may be successfully optimizing its inventory levels to meet demand more effectively. It is essential for AbbVie to continue monitoring and analyzing its inventory management to ensure efficient operations and cost control.