Alkermes Plc (ALKS)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		5.28	4.74	5.30	6.02	8.19
DOH	days	69.11	76.97	68.89	60.66	44.58

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.28
= 69.11

The days of inventory on hand (DOH) for Alkermes plc has exhibited fluctuations over the past five years. In 2023, the DOH was 268.89 days, representing a decrease from the previous year's 303.60 days. This indicates that the company held inventory for a shorter period before selling it in 2023 compared to 2022.

Looking back further, the DOH was 277.99 days in 2021 and 257.38 days in 2020. The downward trend in DOH from 2020 to 2023 suggests that Alkermes plc has been improving its inventory management efficiency by reducing the time it takes to sell its inventory.

In 2019, the DOH was significantly lower at 205.99 days, indicating that the company managed its inventory more efficiently that year compared to the subsequent years. However, it's worth noting that the DOH has fluctuated over the years, indicating potential challenges in maintaining consistent inventory management practices.

Overall, the trend of decreasing DOH from 2020 to 2023 is a positive indication of Alkermes plc's efforts to optimize its inventory turnover and minimize carrying costs associated with excess inventory. Further analysis and comparison with industry benchmarks could provide more insights into the company's inventory management effectiveness.