Integra LifeSciences Holdings (IART)

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		3.60	3.43	3.48	3.51	3.56	3.69	3.73	3.67	3.94	4.17	4.08	4.00	4.14	2.96	2.96	2.65	2.70	3.77	3.32	3.79
DOH	days	101.28	106.26	104.83	104.09	102.46	98.79	97.96	99.37	92.73	87.47	89.46	91.24	88.10	123.33	123.44	137.86	134.99	96.71	110.10	96.42

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.60
= 101.28

Days of Inventory on Hand (DOH) is a crucial financial ratio that provides insight into how efficiently a company manages its inventory. A higher DOH value indicates that the company is taking longer to sell its inventory, tying up capital and potentially facing risks such as inventory obsolescence.

Analyzing the trend in Integra LifeSciences Holdings' DOH over the past few years, we observe fluctuations in the metric. The DOH ranged from a high of 137.86 days on March 31, 2021, to a low of 87.47 days on September 30, 2022. This variability suggests that Integra LifeSciences Holdings has experienced changes in its inventory management practices or sales patterns during this period.

More recently, the DOH has stabilized within a narrower range, indicating potentially more consistent inventory management. For instance, as of December 31, 2024, the DOH stood at 101.28 days, suggesting the company has been able to maintain a relatively stable level of inventory turnover.

It is important for Integra LifeSciences Holdings to strike a balance between keeping enough inventory to meet customer demand and avoiding excessive inventory levels that could lead to increased carrying costs and reduced liquidity. Monitoring and managing the DOH effectively can help the company optimize its working capital and maintain profitability.