Gilead Sciences Inc (GILD)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		8.77	10.62	7.42	2.92	5.43
DOH	days	41.62	34.37	49.16	125.21	67.24

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.77
= 41.62

To analyze Gilead Sciences, Inc.'s days of inventory on hand (DOH) over the past five years, we can observe a fluctuating trend. The DOH indicates the average number of days a company holds its inventory before selling it.

In 2019, Gilead had a DOH of 71.99 days, showing that the company held its inventory for approximately 72 days before selling it. This indicates efficient management of inventory during that period.

The DOH increased significantly to 134.36 days in 2020, indicating a substantial increase in the time taken to sell inventory. This could suggest potential issues such as overstocking or a slowdown in sales.

In 2021, the DOH decreased to 89.47 days, showing an improvement compared to the previous year but still higher than in 2019. This indicates that Gilead may have been able to address some inventory management challenges from the prior year.

The trend continued in 2022 with a further decrease to 97.23 days, possibly reflecting ongoing efforts to optimize inventory levels and enhance operational efficiency.

Finally, in 2023, the DOH slightly increased to 100.38 days, indicating a slight delay in inventory turnover compared to the previous year. It is important for Gilead to monitor and manage its inventory effectively to ensure optimal utilization of resources and maintain profitability.

Overall, the analysis of Gilead Sciences, Inc.'s DOH indicates fluctuations in inventory management efficiency over the past five years, highlighting the importance of continuous monitoring and improvement in this area to support operational effectiveness and financial performance.