Biomarin Pharmaceutical Inc (BMRN)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		0.47	0.48	0.54	0.61	0.75
DOH	days	775.41	759.54	674.72	602.50	486.33

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.47
= 775.41

Biomarin Pharmaceutical Inc's days of inventory on hand (DOH) have exhibited an increasing trend over the past few years. As of December 31, 2020, the company had 486.33 days of inventory on hand, which then increased to 602.50 days by December 31, 2021, further escalating to 674.72 days by December 31, 2022, and reaching 759.54 days by December 31, 2023. The trend continued with Biomarin having 775.41 days of inventory on hand as of December 31, 2024.

This upward trajectory in the days of inventory on hand suggests that Biomarin Pharmaceutical Inc may be experiencing challenges related to managing its inventory efficiently. A high DOH can indicate overstocking, slow-moving inventory, or issues with production forecasting. It could potentially lead to increased storage costs, obsolescence risk, and reduced liquidity due to tied-up capital.

It is crucial for Biomarin to closely monitor and optimize its inventory management practices to strike a balance between having enough inventory to meet demand and avoiding excessive holding costs. Implementing strategies such as improving demand forecasting, streamlining supply chain processes, and periodic inventory reviews could help in addressing the challenges posed by the increasing days of inventory on hand.