Glaukos Corp (GKOS)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		6.63	7.79	7.64	10.79	16.80
DOH	days	55.07	46.87	47.75	33.83	21.73

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.63
= 55.07

The days of inventory on hand (DOH) for Glaukos Corp have exhibited an increasing trend over the past five years. As of December 31, 2020, the company had 21.73 days of inventory on hand, which increased to 33.83 days by December 31, 2021. The trend continued with DOH reaching 47.75 days by December 31, 2022, followed by a slight decrease to 46.87 days by December 31, 2023. However, by December 31, 2024, the days of inventory on hand had increased to 55.07 days.

This upward trend in DOH indicates that Glaukos Corp may be facing challenges in efficiently managing its inventory levels. A higher DOH value suggests that the company is taking longer to sell its inventory, which may tie up capital and lead to potential storage costs and obsolescence risks. It could also point towards potential inefficiencies in forecasting demand and production planning.

It is important for the company to closely monitor and analyze the reasons behind this increasing trend in DOH to optimize its inventory management practices. By implementing strategies to improve inventory turnover and reduce excess inventory, Glaukos Corp can enhance its operational efficiency, cash flow, and overall financial performance.