Hims Hers Health Inc (HIMS)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.71 | 6.99 | 5.48 | 4.97 | 11.09 | |
| DOH | days | 77.51 | 52.21 | 66.59 | 73.44 | 32.90 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.71
= 77.51
The days of inventory on hand (DOH) for Hims Hers Health Inc has shown fluctuating trends over the past five years.
On December 31, 2020, the company held inventory for an average of approximately 32.90 days before being sold, indicating efficient inventory turnover. Subsequently, by December 31, 2021, the DOH increased significantly to 73.44 days, suggesting a longer period required to sell off inventory or potential issues with inventory management.
In the following years, there was some improvement seen in the DOH. By December 31, 2022, the DOH decreased to 66.59 days, signaling a slight improvement in managing inventory levels. However, by December 31, 2023, the DOH decreased further to 52.21 days, indicating even better inventory turnover.
By the end of the analyzed period on December 31, 2024, the DOH spiked to 77.51 days, surpassing the level recorded in 2021. This increase may raise concerns regarding potentially bloated inventory levels or challenges in promptly converting stock into sales.
Overall, it is crucial for Hims Hers Health Inc to closely monitor its inventory management practices to strike a balance between having sufficient inventory to meet demand and minimizing excess or obsolete inventory that could tie up capital.
Peer comparison
Dec 31, 2024