Avantor Inc (AVTR)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019
Inventory turnover		5.69	5.62	5.56	5.45	5.27	5.31	5.37	5.51	5.42	5.55	5.60	5.73	5.60	5.75	5.83	5.68	5.53	6.02
DOH	days	64.18	64.92	65.66	67.01	69.21	68.68	67.91	66.21	67.32	65.79	65.18	63.75	65.13	63.52	62.59	64.23	66.03	60.61

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.69
= 64.18

The Days of Inventory on Hand (DOH) for Avantor Inc has shown a fluctuating trend over the past several quarters. The company's inventory turnover has been on the higher side, indicating efficient management of inventory levels. However, the DOH metric has been gradually increasing from around 60 days in late 2019 to over 69 days in mid-2023, which suggests that inventory is taking longer to be converted into sales.

This increase in DOH may indicate potential issues such as slowing sales, excess inventory holding, or inefficiencies in the supply chain. A high DOH value can tie up cash flow in inventory, leading to increased carrying costs and potential obsolescence risks.

It would be advisable for Avantor Inc to closely monitor and analyze the underlying reasons for the increasing trend in DOH to ensure optimal inventory management and operational efficiency. This analysis could involve assessing demand forecasts, production lead times, supplier deliveries, and sales patterns to improve inventory turnover and reduce the days of inventory on hand.