Boston Scientific Corp (BSX)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		4.24	5.08	5.76	6.42	5.04
DOH	days	86.05	71.87	63.39	56.87	72.37

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.24
= 86.05

The days of inventory on hand (DOH) for Boston Scientific Corp. have shown a fluctuating trend over the past five years. In 2023, the DOH increased to 208.67 days from 172.26 days in 2022, indicating that the company held its inventory for a longer period before it was sold. This increase might be a cause for concern as it could tie up working capital and increase holding costs.

Comparing 2023 to 2021, there has been a significant rise in DOH from 158.35 days to 208.67 days. This suggests that Boston Scientific Corp. may have experienced challenges in managing its inventory efficiently, potentially leading to excess inventory levels.

On the other hand, the DOH decreased from 2023 to 2022, implying that the company improved its inventory management practices during that period. However, it's worth noting that the DOH in 2022 was still higher than in 2020, indicating a potential room for further optimization.

The DOH in 2019 was relatively high at 184.96 days, and it decreased in the following years before increasing again in 2023. This fluctuating pattern suggests that Boston Scientific Corp. may need to focus on enhancing its inventory turnover to improve liquidity and operational efficiency in the future.

Overall, the DOH trend for Boston Scientific Corp. reflects the company's inventory management effectiveness and provides insights into its operational and financial performance over the past five years. Further analysis and comparison with industry benchmarks could help assess the company's competitiveness and identify areas for improvement in inventory control.