Alkermes Plc (ALKS)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.88 | 5.28 | 4.74 | 5.30 | 6.02 | |
| DOH | days | 74.86 | 69.11 | 76.97 | 68.89 | 60.66 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.88
= 74.86
The days of inventory on hand (DOH) for Alkermes Plc have shown a gradual increase over the past five years, from 60.66 days as of December 31, 2020, to 74.86 days as of December 31, 2024. This suggests that the company has been taking longer to sell its inventory over this period.
While a higher DOH may indicate inefficient inventory management or potential obsolescence risks, it could also be a strategic decision to maintain higher levels of inventory to meet anticipated demand or mitigate supply chain disruptions.
It is crucial for Alkermes Plc to closely monitor and analyze its inventory levels to ensure optimal balance between carrying costs and stock outs. By evaluating the reasons behind the increasing DOH trend, the company can make informed decisions to enhance operational efficiency and maintain profitability.
Peer comparison
Dec 31, 2024