Amgen Inc (AMGN)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		1.90	3.04	3.53	1.89	1.54
DOH	days	191.97	120.07	103.41	193.51	237.24

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.90
= 191.97

The days of inventory on hand (DOH) for AMGEN Inc. have shown fluctuations over the past five years.

In 2019, the DOH was relatively high at 300.31 days, indicating that the company held inventory for an extended period before selling it. This could potentially tie up valuable capital and lead to increased holding costs.

However, in 2020 and 2021, there was a decrease in DOH to around 230 days, suggesting an improvement in inventory management efficiency. This may have resulted from better demand forecasting, streamlined production processes, or tighter inventory control measures.

The DOH increased significantly to 280.90 days in 2022 and then further to 411.08 days in 2023. These higher figures may raise concerns about overstocking or potential obsolete inventory issues. It could also indicate challenges in adapting to changing market conditions or disruptions in the supply chain.

Overall, monitoring the days of inventory on hand can provide insights into AMGEN Inc.'s inventory management practices and efficiency in converting inventory into sales. Continued analysis and adjustments may be necessary to optimize inventory levels and enhance the company's financial performance.