Amgen Inc (AMGN)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		1.84	0.89	1.30	1.58	1.58
DOH	days	198.65	411.08	280.90	231.08	230.71

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.84
= 198.65

To analyze Amgen Inc's days of inventory on hand (DOH) trend, we observe an increasing trend over the years. As of December 31, 2020, the company had 230.71 days of inventory on hand, which slightly increased to 231.08 days by December 31, 2021. However, there was a significant jump in DOH to 280.90 days by December 31, 2022, indicating a potential buildup of inventory levels.

By the end of December 31, 2023, the DOH further spiked to 411.08 days, signifying a substantial increase in the time it takes for the company to sell its inventory. This steep rise may raise concerns about inefficient inventory management or slowing sales.

However, there was a notable improvement in the days of inventory on hand by the end of December 31, 2024, where the metric decreased to 198.65 days. This reduction suggests that Amgen Inc may have taken steps to better manage its inventory levels, leading to a quicker turnover of goods.

In conclusion, while the company faced challenges with inventory management in earlier years, the improvement in 2024 indicates a positive shift towards more efficient inventory practices. It is essential for Amgen Inc to continue monitoring and optimizing its inventory turnover to maintain healthy working capital levels and enhance overall operational efficiency.