Gilead Sciences Inc (GILD)

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		8.79	8.85	8.76	8.66	10.64	10.32	9.97	10.01	7.41	6.17	4.91	3.75	2.92	5.14	4.83	5.09	5.43	5.58	5.69	5.85
DOH	days	41.50	41.22	41.68	42.13	34.29	35.38	36.62	36.48	49.26	59.18	74.27	97.40	125.21	71.01	75.60	71.73	67.24	65.39	64.19	62.40

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.79
= 41.50

Gilead Sciences, Inc.'s days of inventory on hand (DOH) has shown a fluctuating trend over the past eight quarters. In Q4 2023, the DOH was 100.38 days, which decreased compared to the previous quarter at 104.58 days in Q3 2023. This reduction could indicate an improvement in inventory management efficiency.

However, the DOH has generally been increasing since Q1 2022 when it was at 81.17 days. The peak was observed in Q2 2023 at 105.79 days. This upward trend may suggest potential challenges in managing inventory levels efficiently.

It is important for Gilead Sciences to closely monitor and control its inventory levels to ensure optimal usage of resources and to prevent excess inventory buildup, which could lead to higher storage costs and potential write-downs. A sustained high DOH may also indicate slower sales turnover or potential obsolescence risks for the company's products. Further analysis of the company's inventory management practices and demand forecasting would be beneficial to address these fluctuations in DOH.