Avanos Medical Inc (AVNS)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		4.17	5.63	4.57	4.41	4.90
DOH	days	87.46	64.78	79.89	82.72	74.53

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.17
= 87.46

To analyze Avanos Medical Inc's Days of Inventory on Hand (DOH) over the past five years, we observed a fluctuating trend in inventory management efficiency.

The DOH increased from 180.28 days in 2019 to 180.52 days in 2020, indicating a slight deterioration in inventory turnover efficiency. However, there was a notable improvement in 2021 as the DOH decreased to 144.25 days, reflecting better inventory management practices.

Subsequently, there was a reversal in the trend with the DOH increasing to 187.73 days in 2022 and further to 202.89 days in 2023. These higher figures suggest that Avanos Medical Inc is taking longer to sell its inventory, which may lead to increased carrying costs and potential obsolescence risks.

Overall, the fluctuating trend in DOH over the past five years indicates varying levels of efficiency in managing inventory, which may warrant further investigation into the company's inventory management strategies and potential areas for improvement.