Embecta Corp (EMBC)

Days of inventory on hand (DOH)

		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
Inventory turnover		5.01	4.76	2.09	2.18	2.24	2.00
DOH	days	72.82	76.65	175.05	167.76	163.11	182.06

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.01
= 72.82

Days of Inventory on Hand (DOH) is a financial ratio that measures the average number of days a company holds its inventory before selling it. A lower DOH value indicates that the company is efficient in managing its inventory, while a higher value may suggest potential issues like overstocking or slow-moving inventory.

Analyzing Embecta Corp's trend in DOH over the past few quarters, we observe the following:
- In Dec 2023, the company had 72.82 days of inventory on hand, which decreased compared to the previous quarter (Sep 2023).
- The trend in DOH seems to fluctuate over the quarters, with values varying between 72.82 days and 182.06 days over the past two years.
- The highest DOH value was recorded in Jun 2022 at 182.06 days, indicating that the company might have faced challenges in managing its inventory efficiently during that period.
- The most recent DOH value in Dec 2023 is relatively lower than the peaks observed in the past, which could signal an improvement in inventory management practices.

Overall, while the company's DOH has shown fluctuations, the recent decrease in days of inventory on hand suggests a potential positive trend in managing inventory more effectively. However, further analysis and monitoring of inventory turnover ratios would be necessary to assess the company's inventory management performance comprehensively.