Arrowhead Pharmaceuticals Inc (ARWR)

Days of inventory on hand (DOH)

		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	Dec 31, 2019
Inventory turnover		—	—	—	—	—	10.56	11.63	—	—	20.07	18.27	19.82	19.75	8.56	8.23	7.73	13.21	12.57	14.87	12.64
DOH	days	—	—	—	—	—	34.57	31.39	—	—	18.19	19.98	18.41	18.48	42.65	44.37	47.24	27.63	29.05	24.55	28.88

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —

The days of inventory on hand (DOH) for Arrowhead Pharmaceuticals Inc has shown fluctuations over the past few periods, ranging from 18.19 days to 47.24 days. The DOH metric indicates the average number of days a company holds its inventory before selling it. A higher DOH value typically suggests slower inventory turnover and potentially inefficient inventory management.

Analyzing the trend, we observe that there was a significant increase in DOH from 18.19 days in March 2022 to 47.24 days in December 2020, indicating a potential buildup of excess inventory during that period. Subsequently, there has been some fluctuation in DOH, with values ranging from 24.55 days to 44.37 days in recent quarters.

It is important for Arrowhead Pharmaceuticals Inc to effectively manage its inventory levels to maintain a balance between holding costs and stockouts. A high DOH can tie up capital in inventory and increase storage costs, while a low DOH may risk stockouts and impact customer satisfaction. Continuous monitoring and optimization of inventory levels can help improve operational efficiency and financial performance.