Abbott Laboratories (ABT)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		3.02	2.74	3.10	3.59	2.99
DOH	days	120.86	133.41	117.71	101.54	121.93

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.02
= 120.86

To analyze Abbott Laboratories' days of inventory on hand (DOH) over the period from December 31, 2020, to December 31, 2024, we observe a fluctuation in the DOH metric.

- As of December 31, 2020, the DOH was 121.93 days, indicating that on average, the company held inventory for approximately 122 days before selling it.
- By December 31, 2021, we see a decrease in DOH to 101.54 days, suggesting an improvement in inventory management efficiency, as the company reduced the number of days it held inventory.
- The DOH increased to 117.71 days by December 31, 2022, indicating a slight increase in the time it takes to sell inventory, potentially signaling a change in demand patterns or inventory management strategies.
- Subsequently, by December 31, 2023, the DOH rose further to 133.41 days, indicating an increase in the time inventory is held, which may be a concern as it ties up capital and could lead to higher carrying costs.
- By December 31, 2024, the DOH decreased to 120.86 days, showing an improvement from the previous year but still higher compared to the levels seen in 2021 and 2022.

Overall, the fluctuation in Abbott Laboratories' DOH suggests varying levels of efficiency in inventory management over the period analyzed, with the company potentially facing challenges in optimizing inventory levels to meet demand while minimizing carrying costs. Further investigation into the underlying factors driving these changes may provide insights into Abbott Laboratories' inventory management practices and their impact on financial performance.