Globus Medical (GMED)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		1.57	0.65	0.88	1.01	0.95
DOH	days	232.38	564.73	413.79	361.61	384.62

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.57
= 232.38

The days of inventory on hand (DOH) for Globus Medical have shown fluctuations over the past five years.

As of December 31, 2020, the company had an inventory holding period of 384.62 days, which decreased to 361.61 days by December 31, 2021. However, the DOH increased significantly to 413.79 days by December 31, 2022, and further rose to 564.73 days by December 31, 2023, indicating a potential issue with inventory management efficiency during these periods.

By December 31, 2024, Globus Medical was able to improve its inventory turnover significantly, with DOH dropping to 232.38 days. This reduction suggests a more effective utilization of inventory, leading to a faster turnover rate.

Overall, Globus Medical experienced fluctuations in its days of inventory on hand over the five-year period, with varying implications for inventory management efficiency and operational performance.