Halozyme Therapeutics Inc (HALO)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		3.31	3.13	3.11	3.88	3.55	2.87	2.15	2.80	2.47	3.81	4.15	4.48	4.20	3.24	3.41	3.50	5.98	5.08	3.73	5.12
DOH	days	110.31	116.63	117.47	94.18	102.92	127.17	169.51	130.28	147.57	95.88	88.03	81.39	86.96	112.55	107.02	104.15	61.06	71.90	97.97	71.34

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.31
= 110.31

To analyze Halozyme Therapeutics Inc.'s Days of Inventory on Hand (DOH) over the past eight quarters, we observe fluctuations in the efficiency of managing inventory levels.

The trend indicates that DOH has been relatively high in recent quarters, with Q3 2022 reporting the highest DOH at 395.70 days. This was followed by a downward trend in Q4 2022. However, the trend reversed in Q1 2023, with a slight increase in DOH to 247.52 days.

The increase in DOH from Q1 2023 to Q2 2023 to 276.67 days may suggest potential issues with inventory management, leading to longer holding periods of inventory. Subsequently, there was a decrease in DOH in Q3 2023 and Q4 2023, indicating a possible improvement in inventory turnover efficiency.

Overall, the company should continue to monitor and optimize its inventory management processes to ensure efficient control of inventory levels and avoid potential liquidity and storage cost implications associated with higher DOH values.