Biogen Inc (BIIB)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		2.09	2.19	3.76	4.19	1.69
DOH	days	175.04	166.44	96.99	87.07	216.06

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.09
= 175.04

The days of inventory on hand (DOH) measures how efficiently a company manages its inventory. Biogen Inc's DOH has fluctuated over the past five years, indicating changes in inventory management.

As of December 31, 2020, Biogen had an elevated DOH of 216.06 days, suggesting a slower turnover of inventory. The company may have had excess inventory or faced challenges in selling products efficiently.

By December 31, 2021, Biogen significantly improved its inventory management, reducing the DOH to 87.07 days. This sharp decrease indicates a more efficient handling of inventory, possibly through better forecasting or supply chain optimization.

In 2022, the DOH slightly increased to 96.99 days, but remained at a lower level compared to 2020. Biogen continued to maintain a good balance between inventory levels and sales demand.

The trend reversed by December 31, 2023, with the DOH rising to 166.44 days. This increase may suggest growing inventory levels relative to sales, potentially leading to higher carrying costs or risks of obsolescence.

The latest data as of December 31, 2024, shows a further increase in DOH to 175.04 days. Biogen may need to reassess its inventory management strategies to bring the DOH back to more optimal levels and avoid potential inefficiencies.

Overall, Biogen's DOH fluctuations reflect varying inventory management practices over the years, highlighting the importance of closely monitoring inventory levels to optimize efficiency and reduce carrying costs.