ACADIA Pharmaceuticals Inc (ACAD)

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		3.73	1.28	1.03	1.02	1.16	1.26	1.49	1.46	1.53	1.76	2.35	2.48	2.43	1.53	1.85	1.97	2.12	2.58	3.30	3.16
DOH	days	97.89	285.90	354.26	359.27	313.98	289.76	245.53	250.44	238.26	206.81	155.41	147.04	150.28	239.14	196.84	185.69	171.97	141.49	110.72	115.35

December 31, 2024 calculation

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

Days of Inventory on Hand (DOH) is a measure that indicates how many days a company holds its inventory before selling it. A higher DOH value typically suggests slower inventory turnover and possibly inefficient inventory management.

Analyzing the DOH trend for ACADIA Pharmaceuticals Inc from March 31, 2020, to December 31, 2024, reveals fluctuations in inventory management efficiency over the period. The DOH increased from 115.35 days on March 31, 2020, reaching its peak at 359.27 days on March 31, 2024, indicating a significant increase in the time it takes for the company to sell its inventory.

The trend in DOH shows volatility, with notable peaks and troughs, which may be attributed to factors such as fluctuating demand, production issues, or changes in procurement and supply chain management. The company experienced a substantial decrease in DOH from March 31, 2024, to December 31, 2024, falling to 97.89 days, indicating improvements in inventory turnover efficiency during that period.

Overall, the trend in DOH for ACADIA Pharmaceuticals Inc suggests potential challenges in inventory management efficiency, leading to extended inventory holding periods. It is crucial for the company to monitor and optimize its inventory turnover to maintain a healthy balance between holding enough inventory to meet demand and minimizing carrying costs associated with excess inventory.