ICU Medical Inc (ICUI)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		2.14	2.27	2.84	2.57	2.35
DOH	days	170.42	160.56	128.44	142.00	155.15

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.14
= 170.42

The days of inventory on hand (DOH) ratio for ICU Medical, Inc. has fluctuated over the past five years. In 2023, the company had an average of 170.42 days of inventory on hand, representing an increase from the previous year's 160.56 days. This suggests that ICU Medical held its inventory for a longer period in 2023, which could indicate potential inefficiencies in inventory management or slower inventory turnover.

Compared to 2019 and 2020, where the DOH ratios were 155.15 days and 142.00 days respectively, the increase in 2023 indicates a possible buildup of excess inventory. However, it is important to consider the industry norms and business model of ICU Medical to determine the optimal level of inventory for the company. Further analysis and comparison with industry benchmarks would provide more insights into the effectiveness of ICU Medical's inventory management practices.