Exelixis Inc (EXEL)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		29.77	31.05	30.48	30.21	35.52	23.91	19.93	18.30	15.55	18.53	14.48	15.99	16.53	15.36	15.68	14.87	14.07	14.08	17.36	16.38
DOH	days	12.26	11.76	11.97	12.08	10.28	15.27	18.32	19.94	23.47	19.70	25.22	22.83	22.07	23.76	23.28	24.54	25.95	25.92	21.03	22.29

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 29.77
= 12.26

Exelixis Inc's Days of Inventory on Hand (DOH) measures the average number of days it takes for the company to sell its inventory during a specific period. A lower DOH is generally favorable as it indicates efficient inventory management and faster turnover.

Based on the provided data, Exelixis Inc's DOH fluctuated over the analyzed period. The trend shows some stability in inventory management, with occasional fluctuations in DOH. From March 31, 2020, to June 30, 2024, we observe a general decrease in DOH from 22.29 days to 11.76 days, indicating an improvement in inventory turnover efficiency.

There are a few periods where DOH increases slightly, such as in September 2020 and December 2020, but the overall trend is towards a lower DOH. The significant improvement in inventory management is evident with a substantial decrease in DOH from September 30, 2023, to December 31, 2024, dropping from 15.27 days to 12.26 days.

The decreasing trend suggests that Exelixis Inc has been more effective in managing its inventory levels and optimizing its supply chain processes. However, it is essential for the company to continue monitoring and optimizing its inventory turnover to ensure efficient use of resources and maintain profitability.