Avanos Medical Inc (AVNS)

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		2.21	1.86	1.82	1.78	1.90	2.14	2.37	1.84	1.95	1.89	2.18	2.42	2.53	2.40	2.36	2.13	2.02	1.77	1.79	2.01
DOH	days	165.29	196.45	200.01	205.17	191.85	170.52	154.04	198.42	187.27	192.65	167.39	150.94	144.25	152.19	154.99	171.01	180.52	206.44	203.67	181.26

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.21
= 165.29

The days of inventory on hand (DOH) for Avanos Medical Inc have shown fluctuations over the periods analyzed. The company's DOH ranged from a high of 206.44 days on September 30, 2020, to a low of 144.25 days on December 31, 2021. Generally, a lower DOH indicates that the company is efficiently managing its inventory.

However, it is worth noting that there are periods where the DOH increased significantly, such as from December 31, 2022, to March 31, 2023, which saw a rise from 187.27 days to 198.42 days. This increase may suggest issues with inventory management efficiency during this period.

Overall, monitoring the trend in DOH can provide insights into the company's inventory management practices and efficiency in turning inventory into sales. It is important for Avanos Medical Inc to strike a balance between maintaining adequate inventory levels to meet customer demand while minimizing excess inventory that could tie up capital and lead to potential obsolescence.