Bio-Rad Laboratories Inc (BIO)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		2.70	2.93	3.96	3.11	3.44
DOH	days	134.95	124.59	92.19	117.23	106.19

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.70
= 134.95

The days of inventory on hand (DOH) for Bio-Rad Laboratories Inc. has shown fluctuations over the past five years. In 2023, the DOH increased to 228.95 days from 212.61 days in 2022, indicating that the company held inventory for a longer period before selling it. This could suggest potential inefficiencies in inventory management or slower inventory turnover.

Comparing to 2021, where the DOH was 162.94 days, the significant increase in 2023 raises concerns about the company's inventory management practices. It is essential for Bio-Rad Laboratories Inc. to closely monitor and optimize its inventory levels to avoid tying up excessive capital in inventory and potentially incurring carrying costs.

Although the DOH in 2020 was 205.02 days, which is lower than in 2023, the current level is still relatively high compared to previous years. The company may need to assess its procurement and production processes to streamline inventory levels and improve overall operational efficiency.

Looking back to 2019, the DOH was 191.73 days, indicating that the company has seen fluctuations in inventory management practices over the years. Bio-Rad Laboratories Inc. should consider implementing inventory control measures to align its inventory levels more closely with customer demand and avoid potential risks associated with excessive inventory holdings.

In summary, the increasing trend of days of inventory on hand for Bio-Rad Laboratories Inc. highlights the importance of closely monitoring inventory turnover and implementing strategies to improve operational efficiency and working capital management.