Catalent Inc (CTLT)
Days of inventory on hand (DOH)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.97 | 4.15 | 4.54 | 4.70 | 6.52 | |
| DOH | days | 61.12 | 87.99 | 80.37 | 77.66 | 56.02 |
June 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.97
= 61.12
Catalent Inc's Days of Inventory on Hand (DOH) measures the average number of days it takes for the company to convert its inventory into sales. A lower DOH indicates efficient inventory management.
Over the past five years, Catalent's DOH has fluctuated. In 2020, the company had a DOH of 56.02 days, which increased to 77.66 days in 2021 and further to 80.37 days in 2022. However, in 2023 and 2024, Catalent managed to reduce its DOH to 87.99 days and 61.12 days, respectively.
The recent decrease in DOH could suggest improved inventory management practices, potentially resulting from better forecasting, supply chain efficiency, or streamlined production processes. However, it is essential to monitor this trend to ensure that the company maintains optimal inventory levels to meet customer demand while avoiding excess holding costs. Further analysis and comparison with industry benchmarks would provide a clearer understanding of Catalent's overall inventory management performance.
Peer comparison
Jun 30, 2024