Avanos Medical Inc (AVNS)

Days of inventory on hand (DOH)

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		3.96	4.57	4.96	3.73	5.64	3.81	4.35	4.73	4.57	4.87	4.83	4.47	4.41	3.80	4.01	4.65	4.90	6.09	5.30	5.30
DOH	days	92.25	79.83	73.60	97.79	64.71	95.74	83.88	77.14	79.89	74.99	75.50	81.64	82.78	96.01	91.13	78.47	74.53	59.91	68.87	68.82

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.96
= 92.25

The days of inventory on hand (DOH) for Avanos Medical Inc have fluctuated over the past eight quarters. In the most recent quarter, Q4 2023, the company had 202.89 days of inventory on hand, showing an increase from the previous quarter's 170.98 days. This suggests that Avanos may be carrying relatively higher levels of inventory compared to the previous quarter.

Looking at the trend over the past two years, the DOH has shown some variability, reaching a peak of 198.91 days in Q1 2023 and a low of 150.94 days in Q1 2022. The average DOH over this period appears to be around 180 days.

A higher DOH could indicate slower inventory turnover, potentially leading to higher storage costs and liquidity issues. On the other hand, a lower DOH might suggest efficient inventory management but could also indicate the risk of stockouts.

Further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of Avanos' inventory management effectiveness.