Baxter International Inc (BAX)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		5.69	6.84	4.70	5.51	6.56
DOH	days	64.10	53.34	77.61	66.24	55.63

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.69
= 64.10

The days of inventory on hand (DOH) for Baxter International Inc. have exhibited varying trends over the past five years. In 2023, the company had 104.77 days of inventory on hand, which increased from 102.11 days in 2022. This indicates that the company held inventory for a slightly longer period in 2023 compared to the previous year.

Looking back, in 2021, Baxter International Inc. reported a higher DOH of 116.60 days, which was a considerable increase from 98.69 days in 2020. This spike in inventory holding period may suggest potential issues in inventory management efficiency during that year.

Conversely, in 2019, the company had a DOH of 91.40 days, which was lower than in the following years. This implies that Baxter International Inc. managed its inventory more efficiently in 2019 by holding inventory for a shorter period.

Overall, fluctuations in the days of inventory on hand for Baxter International Inc. indicate variations in the company's inventory management practices over the years. It is essential for the company to strike a balance between maintaining adequate inventory levels to meet demand and avoiding excessive holding periods to optimize operational efficiency and working capital utilization.