ICU Medical Inc (ICUI)

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		2.14	1.98	2.00	2.12	2.27	2.23	2.04	1.85	2.84	2.79	2.70	2.69	2.57	2.52	2.46	2.59	2.35	2.32	2.43	2.49
DOH	days	170.42	184.10	182.78	172.29	160.56	163.93	178.98	196.99	128.44	131.02	135.22	135.61	142.00	145.03	148.26	141.13	155.15	157.08	150.10	146.32

December 31, 2023 calculation

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

To analyze ICU Medical, Inc.'s days of inventory on hand (DOH), we observe fluctuations in the metric over the past eight quarters. The company's DOH has ranged from as low as 160.56 days in Q4 2022 to as high as 196.99 days in Q1 2022. This indicates variability in the company's inventory management efficiency.

A higher number of DOH suggests that ICU Medical is taking a longer time to sell its inventory, which can tie up capital and increase holding costs. Conversely, a lower number of DOH implies a more efficient inventory turnover, which can lead to reduced risk of obsolescence and lower holding costs.

By tracking the trend of DOH over time, stakeholders can assess the company's ability to manage inventory levels effectively. It is important for ICU Medical to strike a balance between maintaining adequate inventory levels to meet demand while avoiding excess inventory that can lead to increased costs and potential write-offs.