Biogen Inc (BIIB)

Days of inventory on hand (DOH)

		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	Jun 30, 2019	Mar 31, 2019
Inventory turnover		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	2.43	2.66	2.61	2.56
DOH	days	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	150.11	137.42	139.82	142.54

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.19
= 166.44

The days of inventory on hand (DOH) for Biogen Inc has shown fluctuations over the last eight quarters. In Q4 2023, the DOH was at 364.14 days, which decreased significantly from the previous quarter Q3 2023 where it was 437.88 days. This reduction in DOH indicates a potential improvement in inventory management efficiency as the company was able to convert its inventory into sales faster in Q4 2023.

Looking back at Q2 and Q1 2023, the DOH was 212.00 days and 213.77 days respectively, showing a notable increase compared to Q4 2023. This may suggest that Biogen Inc may have experienced challenges in managing its inventory levels efficiently during these quarters.

Compared to the same quarter in the previous year, Q4 2023's DOH of 364.14 days was higher than Q4 2022, where it was 215.38 days. This indicates a significant increase in the number of days it takes for the company to sell its inventory, which could potentially harm cash flow and profitability.

In general, fluctuations in DOH can indicate changes in inventory management practices, market demand, or production efficiency. It is important for Biogen Inc to monitor and optimize its inventory levels to ensure adequate supply to meet customer demands while avoiding excess holding costs.