DexCom Inc (DXCM)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		4.53	6.75	4.43	5.41	8.93
DOH	days	80.62	54.10	82.41	67.49	40.89

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.53
= 80.62

Dexcom Inc's Days of Inventory on Hand (DOH) has experienced fluctuations over the past five years. In 2023, the DOH stood at 153.18 days, indicating that, on average, Dexcom takes approximately 153 days to sell its inventory. This represents an increase compared to the previous year's DOH of 109.03 days.

The significant increase in DOH in 2023 as compared to 2022 could signal potential issues such as overstocking or slowing sales. Conversely, the DOH in 2023 is lower than the levels seen in 2021 and 2020, indicating improved inventory management efficiency during that year.

Moreover, the DOH in 2019 was 80.31 days, significantly lower than the 2023 figure, implying that Dexcom was more efficient in managing its inventory and converting it into sales in 2019.

Overall, a high DOH may indicate inefficiencies in inventory management, potential inventory obsolescence, or slowing demand for Dexcom's products, while a low DOH may suggest efficient inventory turnover and better management of working capital. It is important for Dexcom to monitor its DOH closely and implement appropriate strategies to optimize inventory levels and improve operational efficiency.