Gilead Sciences Inc (GILD)

Gilead Sciences Inc's Days of Inventory on Hand (DOH) has shown significant fluctuations over the past five years.

As of December 31, 2020, the company had an elevated DOH of 240.62 days, indicating that it took the company over 8 months to sell its inventory on hand. This may suggest potential issues with inventory management or demand forecasting during that period.

By December 31, 2021, Gilead Sciences had managed to improve its inventory turnover efficiency, with the DOH decreasing to 151.18 days. This reduction in DOH could be attributed to better inventory control or increased sales efficiency.

However, in the following year, by December 31, 2022, the DOH increased to 181.95 days, indicating that the company took longer to sell its inventory compared to the previous year. This rise in DOH may have implications for working capital management and the company's ability to convert inventory into sales promptly.

Nevertheless, by December 31, 2023, Gilead Sciences made significant progress in inventory management, as the DOH decreased to 112.38 days, showing improved efficiency in inventory turnover. This reduction suggests a more streamlined supply chain or better alignment with market demand.

As of December 31, 2024, the company continued to enhance its inventory management practices, with the DOH further declining to 99.85 days. A lower DOH reflects higher inventory turnover and efficiency, which can positively impact the company's cash flow and profitability.

Overall, analyzing Gilead Sciences Inc's Days of Inventory on Hand (DOH) provides insights into the company's inventory management effectiveness and operational efficiency over the years, highlighting areas of improvement and potential strategies for optimizing inventory turnover.

Peer comparison

Dec 31, 2024