Amphastar P (AMPH)

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		2.33	2.61	2.64	2.67	2.77	2.50	2.53	2.43	2.41	2.43	2.54	2.57	2.56	2.32	2.23	2.23	2.13	1.81	1.87	1.76
DOH	days	156.70	139.81	138.29	136.50	131.72	145.88	144.30	150.26	151.16	150.19	143.97	142.04	142.31	157.39	163.69	163.56	171.15	201.29	195.64	207.93

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.33
= 156.70

The days of inventory on hand (DOH) for Amphastar P have shown fluctuations over the period from March 31, 2020, to December 31, 2024. The trend indicates a gradual decrease from 207.93 days on March 31, 2020, to 131.72 days on December 31, 2023, signifying an improvement in managing inventory levels more efficiently.

The DOH measures how long a company takes to convert its inventory into sales. A decreasing trend in DOH suggests that the company is enhancing its inventory management processes and turning over its inventory faster, which can lead to reduced holding costs and improved cash flow.

However, there was a slight increase in DOH between December 31, 2023, and June 30, 2024, from 131.72 days to 138.29 days. This could indicate potential issues such as slowing sales, excess inventory, or inefficient inventory management during that period.

Overall, the decreasing trend in DOH from March 31, 2020, to December 31, 2023, followed by a slight uptick in the first half of 2024, suggests that Amphastar P has been making efforts to optimize its inventory management practices but may need to focus on maintaining the efficiency achieved in the earlier periods. Monitoring and managing inventory levels effectively is crucial for controlling costs, improving working capital management, and ultimately enhancing the company's overall financial performance.