Avantor Inc (AVTR)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		5.56	5.37	5.60	5.83	5.79
DOH	days	65.66	67.91	65.18	62.59	63.01

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.56
= 65.66

Days of Inventory on Hand (DOH) is a financial ratio that measures how many days, on average, a company holds its inventory before it is sold. A lower number indicates that the company is more efficient at managing its inventory turnover.

Based on the data provided for Avantor Inc, we observe the following trends in the DOH ratio over the past five years:

1. In 2023, the DOH ratio was 65.66 days, slightly lower than the ratio in 2022 of 67.91 days. This suggests that Avantor Inc was able to manage its inventory more efficiently in 2023 compared to the previous year.

2. Comparing 2023 to 2021, the DOH ratio remained relatively stable at 65.18 days in 2021 and 65.66 days in 2023. This indicates that Avantor Inc maintained a consistent level of inventory management efficiency during these two years.

3. There was a noticeable increase in the DOH ratio from 2019 to 2022, with the ratio rising from 63.01 days in 2019 to 67.91 days in 2022. This suggests a potential inefficiency in inventory management during this period.

Overall, while there have been fluctuations in the DOH ratio over the past five years, Avantor Inc shows a general trend towards improving inventory management efficiency in recent years based on the decreasing or stable trend observed in the ratio. However, the company should continue to monitor and optimize its inventory turnover to ensure efficient use of its resources and maintain profitability.