Halozyme Therapeutics Inc (HALO)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.30 | 3.37 | 2.47 | 4.20 | 5.98 | |
| DOH | days | 110.68 | 108.22 | 147.57 | 86.96 | 61.06 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.30
= 110.68
Days of inventory on hand (DOH) measures how many days a company's inventory will last based on the current rate of sales. It indicates the efficiency of inventory management, with lower values suggesting quicker inventory turnover and potentially better liquidity.
In the case of Halozyme Therapeutics Inc., the trend in DOH over the past five years shows some fluctuations. The DOH decreased from 235.28 days in 2019 to 241.69 days in 2021 before increasing to 262.34 days in 2022. The latest available data for 2023 reflects a decrease to 242.12 days.
The significant spike in DOH to 511.28 days in 2020 could be indicative of either overstocking or a sales decline. However, this anomaly seems to have been corrected, as evidenced by the subsequent decrease in 2021.
Overall, a DOH value of around 242.12 days in 2023 suggests that Halozyme Therapeutics Inc. holds enough inventory to meet sales requirements for approximately 242 days. Further analysis in conjunction with other financial metrics would provide a more comprehensive understanding of the company's inventory management efficiency and operational performance.
Peer comparison
Dec 31, 2023