Biogen Inc (BIIB)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	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
Inventory turnover		2.09	2.04	2.13	2.15	2.19	1.82	3.72	3.83	3.76	4.31	4.67	4.95	4.19	2.84	2.48	2.07	1.69	1.71	1.83	2.10
DOH	days	175.04	178.76	171.57	170.11	166.44	200.35	98.18	95.23	96.99	84.61	78.09	73.70	87.07	128.57	147.27	176.45	216.06	212.94	199.56	173.40

December 31, 2024 calculation

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

The days of inventory on hand (DOH) for Biogen Inc have shown fluctuating trends over the specified period. From March 31, 2020, where DOH was 173.40 days, the metric increased steadily, reaching a peak of 216.06 days by December 31, 2020. This longer period indicates that Biogen held inventory for an average of 216.06 days before it was sold during that quarter.

However, starting from March 31, 2021, there was a notable decrease in DOH, reaching a low of 73.70 days by the end of March 31, 2022. This significant reduction in DOH suggests that Biogen managed to streamline its inventory management processes, leading to faster turnover of inventory.

Subsequently, there was a slight increase in DOH up to September 30, 2022, where it stood at 84.61 days. However, there was a sharp spike in DOH to 200.35 days by September 30, 2023, indicating a potential issue with inventory management efficiency during that period.

From December 31, 2023, to December 31, 2024, DOH stabilized between 166.44 days and 178.76 days. This stability in DOH suggests that Biogen may have implemented corrective measures to address the inventory management challenges observed earlier.

In conclusion, monitoring the days of inventory on hand is crucial for assessing Biogen's inventory management effectiveness and operational efficiency. Fluctuations in this metric can provide insights into the company's inventory turnover rate, production processes, and overall financial performance. Further analysis of operational and strategic factors impacting inventory management may be necessary to understand the underlying reasons for the observed trends in DOH.