CVS Health Corp (CVS)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 21.88 | 18.08 | 17.36 | 15.08 | 15.27 | |
| DOH | days | 16.68 | 20.19 | 21.03 | 24.21 | 23.90 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 21.88
= 16.68
The Days of Inventory on Hand (DOH) for CVS Health Corp has been showing a decreasing trend over the past five years, indicating efficiency in managing inventory levels.
In 2023, CVS Health Corp had an impressive DOH of 30.30 days, down from 35.39 days in 2022, 36.87 days in 2021, 41.17 days in 2020, and 40.28 days in 2019. This downward trend suggests that the company has been successful in optimizing its inventory management practices and improving inventory turnover efficiency.
A lower DOH indicates that CVS Health Corp is carrying less inventory relative to its sales volume, which can lead to cost savings, reduced carrying costs, and improved cash flow. It also suggests effective demand forecasting and inventory control measures, allowing the company to avoid excess inventory buildup and potential obsolescence.
Overall, the declining trend in DOH for CVS Health Corp reflects a positive operational aspect of the company in terms of managing its inventory efficiently, which can contribute to improved profitability and financial performance.
Peer comparison
Dec 31, 2023