Danaher Corporation (DHR)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover		4.15	3.02	3.21	3.54	3.80	4.04	3.90	3.65	4.03	3.80	3.71	3.87	4.16	4.06	4.28	4.34	4.28	3.79	3.37	3.33
DOH	days	87.96	120.81	113.80	103.06	96.06	90.35	93.53	100.10	90.65	96.05	98.35	94.39	87.81	89.98	85.37	84.15	85.29	96.42	108.30	109.63

December 31, 2024 calculation

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

The Days of Inventory on Hand (DOH) for Danaher Corporation has shown fluctuations over the past few years. It decreased from 109.63 days as of March 31, 2020, to 85.29 days by December 31, 2020. This downward trend continued until March 31, 2021, when it reached its lowest point of 84.15 days.

However, from thereon, there was an increase in the DOH, with fluctuations observed in subsequent quarters. The DOH increased to 98.35 days by June 30, 2022, before decreasing slightly to 90.35 days by September 30, 2023. By June 30, 2024, the DOH spiked significantly to 113.80 days, indicating potential challenges in managing inventory levels efficiently.

The DOH ratio provides insights into how long it takes for Danaher to convert its inventory into sales. A higher DOH can suggest slow-moving inventory or potential overstocking, leading to higher storage costs or potential obsolescence risks. On the other hand, a lower DOH may indicate effective inventory management but could also imply stockouts or missed sales opportunities.

Overall, the fluctuations in Danaher Corporation's DOH over the periods analyzed suggest the need for careful monitoring and optimization of inventory management practices to strike a balance between maintaining adequate inventory levels and avoiding excess carrying costs.