AbbVie Inc (ABBV)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	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
Inventory turnover		3.56	2.89	3.59	4.05	4.17	4.74	4.30	4.53	4.87	5.54	4.99	4.96	5.58	5.76	5.45	5.40	4.65	3.66	2.36	4.17
DOH	days	102.65	126.34	101.76	90.12	87.51	76.96	84.97	80.65	75.02	65.92	73.21	73.55	65.44	63.41	66.91	67.63	78.52	99.77	154.66	87.56

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.56
= 102.65

Days of Inventory on Hand (DOH) is a financial ratio that measures how many days, on average, a company holds onto its inventory before selling it. A lower DOH value indicates that inventory is moving quickly, while a higher value suggests that inventory turnover is slower.

Based on the provided data for AbbVie Inc, the trend of DOH from March 31, 2020, to December 31, 2024, shows some fluctuations. The DOH ranged from a low of 63.41 days on September 30, 2021, to a high of 126.34 days on September 30, 2024.

Overall, the company's DOH has generally remained within a manageable range over the specified period. It is important for companies to strike a balance in managing inventory efficiently to avoid excess carrying costs for holding inventory too long or running the risk of stockouts due to insufficient inventory levels.

Analyzing the DOH trend can provide insights into AbbVie Inc's inventory management practices and efficiency in converting its inventory into sales. Further analysis in conjunction with other financial ratios and industry benchmarks can offer a more comprehensive view of the company's operational performance and effectiveness in managing its working capital.