ADMA Biologics Inc (ADMA)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		0.98	0.73	0.64	0.75	0.74
DOH	days	372.83	501.60	570.70	485.56	490.30

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.98
= 372.83

The Days of Inventory on Hand (DOH) for ADMA Biologics Inc have shown a fluctuating trend over the past five years. The DOH decreased from 570.70 days in 2021 to 501.60 days in 2022, before increasing again to 372.83 days in 2023. This indicates that the company was able to manage its inventory more efficiently in 2022 but experienced a reversal in 2023.

The comparatively lower DOH in 2023 suggests that ADMA Biologics Inc was able to turn its inventory into sales quicker during that year, which could potentially result in improved cash flows and reduced carrying costs. However, it is essential to closely monitor this metric in the future to ensure inventory levels are effectively managed to meet customer demand without incurring unnecessary costs.