Embecta Corp (EMBC)

Days of inventory on hand (DOH)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022
Inventory turnover		4.45	4.76	5.77
DOH	days	81.93	76.69	63.22

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.45
= 81.93

The Days of Inventory on Hand (DOH) for Embecta Corp has been showing an increasing trend over the past three years. In September 2024, the DOH stood at 81.93 days, higher than the previous year's 76.69 days and significantly higher than the 63.22 days recorded in September 2022.

A higher DOH indicates that the company is holding onto its inventory for a longer period before being sold. This could be due to various reasons such as slower sales, overstocking, inefficient inventory management, or changing customer preferences.

Embecta Corp may need to assess its inventory management practices to optimize its inventory levels and improve efficiency in order to avoid potential risks associated with excess inventory, such as storage costs, obsolescence, and reduced liquidity. Additionally, this increasing trend in DOH could also impact the company's liquidity and profitability ratios, highlighting the importance of closely monitoring and managing inventory turnover to ensure optimal performance and financial health.