Alkermes Plc (ALKS)

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		4.88	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
DOH	days	74.86	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

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 some fluctuations over the years based on the data provided. The DOH indicates the average number of days it takes for the company to sell its inventory.

Looking at the historical trend, we observe that the DOH increased from 64.74 days as of March 31, 2020, to its peak of 101.30 days as of September 30, 2024. This upward trend suggests that Alkermes Plc may have been carrying excess inventory during this period, which could tie up capital and impact profitability.

However, there were also periods where the DOH decreased, indicating potential improvements in inventory management efficiency. Notably, there was a decrease in DOH from December 31, 2024, to the end of the period on March 31, 2025, which may indicate more effective inventory control methods implemented by the company.

Overall, a high DOH could imply inefficiency in managing inventory levels, leading to increased storage costs or risk of obsolescence. It's essential for Alkermes Plc to strike a balance in inventory management to ensure optimal utilization of resources and maintain a healthy liquidity position. Additionally, monitoring and analyzing DOH regularly can help identify trends and opportunities for operational improvements in inventory management practices.