Alkermes Plc (ALKS)

Days of inventory on hand (DOH)

		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	Dec 31, 2019
Inventory turnover		3.60	3.70	3.88	4.14	5.13	5.03	4.82	4.74	5.19	5.44	5.36	5.30	5.56	5.56	5.53	6.02	4.65	5.08	5.64	6.11
DOH	days	101.30	98.58	94.18	88.27	71.18	72.59	75.65	76.97	70.31	67.13	68.06	68.89	65.62	65.63	66.01	60.66	78.46	71.82	64.74	59.69

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.60
= 101.30

The Days of Inventory on Hand (DOH) ratio for Alkermes Plc has shown some fluctuations over the past few quarters. DOH indicates the number of days a company holds its inventory before selling it. A higher DOH value suggests that the company is taking longer to sell its inventory, which could tie up capital and lead to storage costs.

Looking at the data provided, we can observe that in the most recent quarter, the DOH was 101.30 days, which indicates an increase compared to the previous quarter's DOH of 98.58 days. This suggests that Alkermes Plc took longer to sell its inventory in the most recent quarter, which may have implications for the company's working capital management and operational efficiency.

Analyzing the trend over the past few quarters, we see fluctuations in the DOH ratio, with some quarters showing increases and others showing decreases. It is important for the company to closely monitor its inventory management processes to ensure optimal levels of inventory to meet customer demand while minimizing holding costs.

Overall, the trend in Alkermes Plc's DOH ratio indicates variability in inventory management efficiency. Further analysis and comparison with industry benchmarks would provide a better understanding of the company's performance in this aspect.