Bio-Rad Laboratories Inc (BIO)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 1.56 | 1.59 | 1.72 | 2.24 | 1.78 | |
| DOH | days | 233.58 | 228.95 | 212.61 | 162.94 | 205.02 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.56
= 233.58
Bio-Rad Laboratories Inc's days of inventory on hand (DOH) have shown some fluctuations over the years based on the provided data. In December 2020, the company had 205.02 days of inventory on hand, which decreased to 162.94 days by December 2021, indicating an improvement in inventory management efficiency. However, by December 2022, the DOH increased to 212.61 days, suggesting a buildup of inventory.
The trend continued with a further increase in DOH to 228.95 days by December 2023 and 233.58 days by December 2024. These higher DOH figures may indicate potential challenges in managing and moving inventory efficiently, which could lead to increased costs and potential liquidity issues if the inventory is not converted into sales in a timely manner.
It is crucial for Bio-Rad Laboratories Inc to monitor and optimize its inventory turnover to strike a balance between meeting demand and avoiding excess inventory accumulation, which can tie up capital and increase holding costs. Periodic review and adjustment of inventory strategies may be necessary to ensure operational efficiency and financial health.
Peer comparison
Dec 31, 2024