DexCom Inc (DXCM)

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		2.94	2.58	2.57	2.40	2.38	2.47	2.74	2.94	3.35	3.15	2.67	2.45	2.15	2.03	2.10	2.28	2.76	3.14	3.75	4.10
DOH	days	124.04	141.25	141.96	152.11	153.18	148.03	133.29	124.28	109.03	116.02	136.73	149.12	169.81	180.04	174.10	160.43	132.49	116.22	97.44	89.08

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.94
= 124.04

The days of inventory on hand (DOH) for DexCom Inc have fluctuated over the past few years. The trend shows an increase from 89.08 days as of March 31, 2020, to a peak of 180.04 days as of September 30, 2021. Subsequently, there was a decrease in DOH to 109.03 days as of December 31, 2022, before rising again and stabilizing around 140 days in the following periods.

A high DOH indicates that DexCom Inc may be holding excess inventory relative to its sales volume, which can tie up capital and increase holding costs. Conversely, a low DOH may point to efficient inventory management but could also suggest potential stockouts or production disruptions.

Analyzing the DOH trend can provide insights into DexCom Inc's inventory management effectiveness, production planning, and demand forecasting accuracy. Continued monitoring of this metric can help identify opportunities for optimizing inventory levels to enhance financial performance and operational efficiency.