Avantor Inc (AVTR)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.16 | 5.56 | 5.37 | 5.60 | 5.83 | |
| DOH | days | 59.28 | 65.66 | 67.91 | 65.18 | 62.59 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.16
= 59.28
The days of inventory on hand (DOH) for Avantor Inc have shown fluctuations over the past five years. In December 2020, the DOH stood at 62.59 days, indicating the average number of days it took for Avantor to sell its inventory. Subsequently, the DOH increased to 65.18 days by December 2021 and further to 67.91 days by December 2022, reflecting a potential buildup of inventory.
However, there was a slight improvement in inventory management by December 2023 when the DOH decreased to 65.66 days. This could imply better efficiency in managing and selling inventory. The most recent data as of December 2024 shows a significant improvement with the DOH decreasing to 59.28 days, suggesting a potentially more streamlined inventory management process.
Overall, the trend in the DOH for Avantor Inc indicates varying levels of inventory management effectiveness over the years, with potential implications for working capital management and operational efficiency. It would be important for investors and stakeholders to monitor this ratio to assess the company's ability to manage and convert inventory into sales effectively.
Peer comparison
Dec 31, 2024