IDEXX Laboratories Inc (IDXX)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.87 | 3.71 | 4.93 | 5.41 | 5.34 | |
| DOH | days | 94.36 | 98.50 | 74.06 | 67.46 | 68.35 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.87
= 94.36
To analyze Idexx Laboratories, Inc.'s Days of Inventory on Hand (DOH) over the past five years, we observe a fluctuating trend. In 2023, the company's DOH was 94.36 days, representing a decrease from 98.50 days in 2022. This reduction indicates improved inventory management efficiency as the company held inventory for fewer days to support its sales.
Comparing 2023 to 2021, where the DOH was 74.06 days, the current DOH has increased, reflecting a longer inventory holding period. The higher DOH in 2023 suggests that Idexx Laboratories may be facing challenges in managing its inventory levels efficiently or experiencing slower inventory turnover.
In 2020 and 2019, the DOH was 67.46 days and 68.35 days, respectively. The slight increase in DOH in 2023 compared to these years indicates that the company may be carrying more inventory relative to its sales during the most recent period.
Overall, while there was a reduction in the DOH from 2022 to 2023, further analysis is recommended to understand the factors driving these changes and assess the effectiveness of Idexx Laboratories' inventory management practices.
Peer comparison
Dec 31, 2023