Glaukos Corp (GKOS)

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 6.41 5.92 6.03 6.48 7.49 7.37 7.21 6.89 7.09 7.71 9.31 10.30 10.96 12.73 14.18 16.03 16.71 13.89 12.91 9.33
DOH days 56.93 61.69 60.54 56.36 48.72 49.54 50.64 52.96 51.51 47.36 39.20 35.43 33.31 28.67 25.75 22.77 21.84 26.27 28.28 39.11

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.41
= 56.93

The Days of Inventory on Hand (DOH) ratio for Glaukos Corp has exhibited fluctuations over the past few years.

From March 31, 2020, to June 30, 2020, the DOH ratio improved from 39.11 days to 28.28 days, indicating that the company managed its inventory more effectively during that period. However, the ratio started to increase steadily from June 2020 to reach a peak of 61.69 days by September 30, 2024.

An increasing DOH ratio may suggest inefficiencies in inventory management, possibly due to overstocking or slower sales. It could tie up working capital and lead to higher carrying costs.

On the other hand, a decreasing DOH ratio indicates that Glaukos Corp is selling its inventory faster, which could free up cash for other investments and reduce the risk of obsolete inventory.

It is essential for the company to monitor its inventory levels closely to strike a balance between meeting customer demand and optimizing working capital utilization. Further investigation into the reasons behind the fluctuations in the DOH ratio can provide insights into the company's inventory management strategies and help in making informed decisions to enhance operational efficiency.