Amphastar P (AMPH)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		2.77	2.41	2.56	2.13	1.72
DOH	days	131.72	151.16	142.31	171.15	211.79

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.77
= 131.72

The days of inventory on hand (DOH) for Amphastar Pharmaceuticals Inc have shown a fluctuating trend over the past five years, as follows:

- As of December 31, 2023, the company had 131.72 days of inventory on hand, indicating a decrease from the previous year.
- In December 2022, the DOH was 151.16 days, showing a decrease compared to 2021.
- By the end of 2021, the DOH stood at 142.31 days, reflecting a slight improvement from the prior year.
- As of December 31, 2020, the DOH was at 171.15 days, demonstrating a decrease from 2019.
- In December 2019, the company had the highest DOH over the period at 211.79 days.

The trend in Amphastar Pharmaceuticals Inc's DOH suggests that the company has been working towards optimizing its inventory management. A decreasing trend in DOH indicates that the company is holding less inventory relative to its sales, which can lead to lower storage costs and improved cash flow. However, it is essential for the company to strike a balance to ensure that it has enough inventory to meet customer demand without experiencing stockouts.