Halozyme Therapeutics Inc (HALO)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		1.12	1.51	1.39	1.51	0.71
DOH	days	324.80	242.12	262.34	241.69	511.28

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.12
= 324.80

The days of inventory on hand (DOH) for Halozyme Therapeutics Inc decreased from 511.28 days as of December 31, 2020, to 241.69 days as of December 31, 2021. This significant reduction suggests that the company was able to manage its inventory more efficiently, possibly through better inventory management practices or adjustments in production levels.

However, the DOH increased to 262.34 days as of December 31, 2022, and then decreased slightly to 242.12 days as of December 31, 2023. This fluctuation indicates some variability in the company's inventory management during these years.

The DOH saw a notable increase to 324.80 days as of December 31, 2024. This rise in DOH could be a concern as it suggests that Halozyme Therapeutics Inc may be holding excess inventory, which could tie up capital and lead to potential obsolescence risks.

In conclusion, while the company was able to improve its inventory management efficiency initially, there were fluctuations in DOH over the years, with a significant increase observed in the most recent year. Halozyme Therapeutics Inc may need to review its inventory practices to ensure optimal levels and minimize carrying costs.