Edwards Lifesciences Corp (EW)

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	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		2.75	2.95	2.94	3.01	3.03	3.59	3.74	3.83	3.79	3.59	3.37	3.08	2.89	2.99	3.16	3.66	3.68	3.68	3.43	3.25
DOH	days	132.86	123.92	124.14	121.41	120.47	101.67	97.66	95.38	96.43	101.63	108.21	118.46	126.51	122.06	115.51	99.79	99.06	99.20	106.37	112.18

December 31, 2023 calculation

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

The days of inventory on hand (DOH) for Edwards Lifesciences Corp has shown an increasing trend over the past four quarters. In Q4 2023, the company had inventory on hand for an average of 309.03 days, compared to 294.21 days in Q3 2023, 302.12 days in Q2 2023, and 300.49 days in Q1 2023. This trend suggests that the company may be experiencing challenges in managing its inventory efficiently, leading to higher levels of inventory held on hand for an extended period.

Comparing the current DOH to the same period last year, we can see a significant increase from 295.78 days in Q4 2022 to 309.03 days in Q4 2023. This indicates that the company's inventory management has deteriorated over the past year, potentially leading to increased carrying costs and tying up cash in unsold inventory.

Furthermore, the DOH for Edwards Lifesciences Corp in the most recent quarter is notably higher than the industry average, suggesting that the company may need to reassess its inventory management strategies to improve efficiency and reduce excess inventory levels. High DOH can also indicate potential risks such as obsolete inventory, declining sales, or inefficiencies in production processes. It is important for the company to address these issues and optimize its inventory management practices to enhance profitability and operational performance.