Biomarin Pharmaceutical Inc (BMRN)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Inventory turnover		0.45	0.47	0.50	0.52	0.55	0.54	0.57	0.58	0.59	0.61	0.64	0.79	0.75	0.75	0.70	0.54	0.54	0.53	0.56	0.55
DOH	days	808.91	771.55	730.70	702.13	667.91	674.72	643.53	631.98	614.19	602.50	573.56	461.62	488.84	486.33	517.80	675.07	674.85	690.75	656.56	659.03

March 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.45
= 808.91

The days of inventory on hand (DOH) for Biomarin Pharmaceutical Inc has shown fluctuating trends over the past few quarters. It indicates the number of days a company holds its average inventory before selling it.

From Mar 31, 2019, to Mar 31, 2024, the DOH ranged from a low of 461.62 days to a high of 808.91 days, with the highest value recorded in Mar 31, 2024. The increase in DOH from 667.91 days in Mar 31, 2023, to 808.91 days in Mar 31, 2024, suggests that the company is taking longer to sell its inventory. This could be attributed to factors such as slower sales, excess inventory levels, or inefficiencies in inventory management.

On the other hand, the decrease in DOH from 573.56 days in Jun 30, 2021, to 461.62 days in Mar 31, 2023, indicates a more efficient inventory management process during that period, possibly due to better demand forecasting, streamlined operations, or effective inventory control measures.

It is essential for Biomarin Pharmaceutical Inc to closely monitor and manage its inventory levels to ensure optimal utilization of resources and improve its overall liquidity and profitability. A higher DOH could tie up valuable working capital and increase storage costs, while a lower DOH may signal potential stockouts or missed sales opportunities.