Avanos Medical Inc (AVNS)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.21 | 1.80 | 1.94 | 2.53 | 2.02 | |
| DOH | days | 165.29 | 202.89 | 187.73 | 144.25 | 180.52 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.21
= 165.29
The days of inventory on hand (DOH) for Avanos Medical Inc has shown some fluctuations over the past five years. In December 2020, the company had an inventory holding period of 180.52 days, which decreased to 144.25 days by December 2021. However, the DOH increased in the following years, reaching 187.73 days by December 2022, 202.89 days by December 2023, and then declining to 165.29 days by December 2024.
A high DOH value may indicate that Avanos Medical Inc is holding excessive levels of inventory, which could tie up capital and lead to higher holding costs. Conversely, a low DOH value may suggest efficient inventory management but could also indicate the risk of stockouts.
Overall, Avanos Medical Inc should continue monitoring its inventory management practices to strike a balance between ensuring product availability for customers and minimizing holding costs to improve its operational efficiency and profitability.
Peer comparison
Dec 31, 2024