Abbott Laboratories (ABT)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.78 | 5.33 | 6.20 | 5.36 | 5.78 | |
| DOH | days | 76.40 | 68.44 | 58.89 | 68.09 | 63.19 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.78
= 76.40
Abbott Laboratories' Days of Inventory on Hand (DOH) has shown a fluctuating trend over the past five years. The DOH increased from 119.06 days in 2019 to 121.93 days in 2020, suggesting a slightly longer time taken to sell inventory. However, in 2021, there was a significant improvement as the DOH decreased to 101.54 days, indicating a more efficient management of inventory.
In 2022, the DOH increased again to 117.71 days, which may indicate a slower turnover of inventory compared to the previous year. The most recent data point as of December 31, 2023, shows a further increase in DOH to 133.41 days, potentially signaling a longer time for the company to sell its inventory.
Overall, the increasing trend in DOH over the last two years may raise concerns about Abbott Laboratories' inventory management efficiency and liquidity, as a higher DOH implies tying up more capital in inventory. Further analysis and comparison with industry benchmarks may provide additional insights into the company's inventory management performance.
Peer comparison
Dec 31, 2023