Edwards Lifesciences Corp (EW)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		2.75	3.09	3.79	2.89	3.68
DOH	days	132.86	118.02	96.43	126.51	99.06

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.75
= 132.86

Over the past five years, Edwards Lifesciences Corp has shown fluctuations in its Days of Inventory on Hand (DOH) metric. The DOH represents the number of days it takes for a company to sell its average inventory balance.

In 2019, the company had a DOH of 209.91 days, indicating that it took approximately 209 days to sell its average inventory. This number increased to 271.00 days in 2020, suggesting a slower inventory turnover rate, potentially resulting in excess inventory levels or inefficiencies in managing inventory.

However, in 2021, there was a significant improvement as the DOH decreased to 212.38 days, indicating better inventory management or increased sales efficiency. This improvement continued into 2022, with the DOH further decreasing to 295.78 days.

The latest available data for 2023 shows a notable increase in the DOH to 309.03 days. This increase suggests a potential slowdown in inventory turnover, which could be due to various factors such as changes in demand, production issues, or supply chain disruptions.

Overall, the trend in the DOH for Edwards Lifesciences Corp reflects fluctuations in inventory management efficiency over the years, with periods of improvement and some instances of slower inventory turnover. Further analysis and investigation into the factors influencing these fluctuations could provide insights into the company's operational performance and supply chain effectiveness.