ICU Medical Inc (ICUI)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		2.66	2.14	2.27	2.84	2.57
DOH	days	137.04	170.42	160.56	128.44	142.00

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.66
= 137.04

The days of inventory on hand (DOH) for ICU Medical Inc have fluctuated over the years based on the provided data. The trend shows that the company held inventory for approximately 142 days as of December 31, 2020, which decreased to around 128.44 days by December 31, 2021. However, there was a significant increase in DOH to 160.56 days by December 31, 2022, followed by a further increase to 170.42 days by December 31, 2023. Subsequently, the DOH decreased to 137.04 days as of December 31, 2024.

The DOH metric is used to assess how efficiently a company manages its inventory by indicating the number of days it takes for inventory to be sold or used. A lower DOH typically indicates effective inventory management, as it suggests that inventory is being turned over quickly. Conversely, a higher DOH may indicate excess inventory levels or inefficiencies in inventory management.

In ICU Medical Inc's case, the fluctuation in DOH over the years suggests varying levels of inventory management efficiency. The company may have faced challenges in balancing inventory levels with demand during certain periods, leading to changes in the DOH metric. It would be crucial for ICU Medical Inc to closely monitor and optimize its inventory management practices to ensure efficient use of resources and timely response to market demand.