Globus Medical (GMED)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		0.65	0.88	1.01	0.95	0.92
DOH	days	564.73	413.79	361.61	384.62	398.14

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.65
= 564.73

The days of inventory on hand (DOH) for Globus Medical Inc have shown a fluctuating trend over the past five years. There has been an increase in DOH from 398.14 days in 2019 to 564.73 days in 2023, indicating that the company is holding inventory for a longer period. This can possibly be a sign of overstocking or inefficiencies in inventory management.

It is worth noting that in 2020, the DOH decreased to 384.62 days, but then increased again in the following years. This fluctuation suggests potential inconsistencies in the company's inventory management practices.

Overall, the increasing trend in DOH highlights the need for Globus Medical Inc to closely monitor and optimize its inventory levels to improve efficiency and reduce holding costs. A higher DOH may indicate that the company is tying up more resources in inventory, which could have implications for working capital management and profitability in the long run.