Corcept Therapeutics Incorporated (CORT)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 24.74 | 25.94 | 25.59 | 22.59 | 19.52 | |
| DOH | days | 14.76 | 14.07 | 14.26 | 16.16 | 18.70 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 24.74
= 14.76
The days of inventory on hand (DOH) for Corcept Therapeutics Inc have shown an increasing trend over the past five years, indicating that the company is taking longer to sell its inventory or turnover its stock. In 2019, the DOH was at 359.69 days, which increased to 435.34 days by the end of 2023. This suggests that the company has been holding onto its inventory for a longer period over the years.
A high DOH can be indicative of overstocking, inefficient inventory management, or slowing sales. It may tie up working capital and lead to increased carrying costs, potentially impacting the company's profitability and liquidity. Management should focus on optimizing inventory levels, streamlining operations, and enhancing sales strategies to improve inventory turnover and reduce the DOH metric over time.
Peer comparison
Dec 31, 2023