Globus Medical (GMED)

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		1.71	1.57	1.25	0.92	0.65	0.39	0.84	0.86	0.88	0.90	0.93	0.96	1.01	1.02	1.02	0.96	0.95	0.89	0.86	0.90
DOH	days	213.90	232.44	292.39	398.01	564.73	935.00	432.19	425.51	413.79	404.34	391.58	380.78	361.61	359.00	356.34	378.68	384.62	412.09	423.06	406.87

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.71
= 213.90

The Days of Inventory on Hand (DOH) for Globus Medical has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The trend indicates that the company's management of inventory levels has varied significantly during this time frame.

Initially, from March 2020 to December 2021, there was a general decline in DOH, reflecting potential improvements in inventory management efficiency. However, there was a slight increase in DOH in the subsequent quarters of March and June 2022, suggesting a possible slowdown in inventory turnover during that period.

The most notable observation occurred in the third quarter of 2023 when the DOH spiked to 935.00 days, which is significantly higher compared to the historical range. This abrupt increase may indicate potential issues such as excess inventory, slower sales, or logistical challenges impacting inventory turnover.

Following the peak in September 2023, there was a significant drop in DOH to 213.90 days by December 2024. This sharp decrease in inventory days on hand indicates a rapid improvement in inventory management practices or a reaction to the high levels seen in the previous period.

In conclusion, the analysis of Globus Medical's Days of Inventory on Hand highlights fluctuations in inventory management performance over the observed period, with notable variations and potential areas for further investigation and improvement in inventory control strategies.