Danaher Corporation (DHR)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		4.15	4.71	4.03	4.16	4.28
DOH	days	87.96	77.51	90.65	87.81	85.29

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.15
= 87.96

Based on the provided data, Danaher Corporation's Days of Inventory on Hand (DOH) has shown some variability over the past five years.

In December 2020, the company had an inventory turnover rate of 85.29 days, indicating the number of days it took on average for the company to sell its inventory. This figure increased to 87.81 days by the end of December 2021, suggesting a slight decrease in the efficiency of inventory management.

Subsequently, there was a further increase in DOH to 90.65 days by the end of December 2022, indicating that inventory turnover slowed down even more. However, Danaher Corporation managed to improve its efficiency in managing inventory in the following year, with DOH decreasing to 77.51 days by the end of December 2023.

By the end of December 2024, the DOH increased again to 87.96 days, showing a reversal in the efficiency gains made in the previous year. Overall, fluctuations in the DOH ratio over the five-year period suggest a need for Danaher Corporation to closely monitor and potentially optimize its inventory management practices to maintain a healthy balance between holding too much inventory and risking stockouts.