ACADIA Pharmaceuticals Inc (ACAD)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		3.73	1.28	1.53	2.43	2.12
DOH	days	97.89	285.89	238.26	150.28	171.97

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.73
= 97.89

The days of inventory on hand (DOH) for ACADIA Pharmaceuticals Inc have exhibited fluctuations over the past five years. In December 2020, the company had an inventory holding period of 171.97 days, which decreased to 150.28 days by the end of 2021. However, there was a significant increase in DOH to 238.26 days by December 2022, indicating a longer period that inventory is held before being sold. This trend continued in the following years, with DOH rising to 285.89 days by the end of 2023.

It is worth noting that inventory management is crucial for companies to maintain optimal cash flow and efficiency. The sudden spike in DOH in 2022 and 2023 may imply challenges in effectively managing inventory levels or changes in demand patterns. However, the decrease in DOH to 97.89 days by December 2024 could be seen as a positive sign, indicating potential efforts to streamline inventory practices.

Overall, ACADIA Pharmaceuticals Inc may benefit from closer monitoring and adjustment of inventory levels to strike a balance between meeting demand and optimizing working capital.