Edwards Lifesciences Corp (EW)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		1.03	1.18	1.23	1.72	1.35
DOH	days	354.94	309.03	295.78	212.38	271.00

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.03
= 354.94

The days of inventory on hand (DOH) for Edwards Lifesciences Corp have fluctuated over the past five years. As of December 31, 2020, the company held inventory for an average of 271.00 days before it was sold. Over the next year, the DOH decreased to 212.38 days by December 31, 2021, indicating a more efficient management of inventory levels.

However, in the following years, the DOH increased significantly. By December 31, 2022, the DOH had jumped to 295.78 days, suggesting potential challenges in managing inventory turnover. This trend continued with DOH further rising to 309.03 days by December 31, 2023, and reaching 354.94 days by December 31, 2024.

The continual increase in days of inventory on hand may raise concerns about the company's inventory management efficiency, potentially leading to higher carrying costs, risk of obsolescence, and lower liquidity. Edwards Lifesciences Corp may need to reassess its inventory management strategies to improve operational effectiveness and optimize working capital utilization.