IDEXX Laboratories Inc (IDXX)

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 3.97 3.87 3.94 3.80 3.87 3.65 3.56 3.54 3.71 3.84 4.11 4.50 4.93 5.00 5.20 5.21 5.41 5.05 4.62 5.03
DOH days 91.89 94.31 92.66 96.02 94.36 99.92 102.53 103.24 98.50 94.99 88.83 81.15 74.06 72.98 70.24 70.02 67.46 72.30 79.01 72.63

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.97
= 91.89

Based on the given data, IDEXX Laboratories Inc's days of inventory on hand (DOH) has shown some fluctuations over the years. In general, DOH represents the average number of days that a company holds its inventory before selling it.

The trend in IDEXX's DOH is as follows:
- The DOH increased from around 72 days in March 2020 to approximately 98 days by December 2022, indicating a buildup in inventory levels.
- Subsequently, there was a slight decrease in DOH to around 94 days by March 2023.
- Following this, there was a fluctuating pattern in DOH, ranging from 91 to 103 days up to March 2024.

A high DOH could suggest that the company is holding excessive inventory relative to its sales volume, which may lead to increased storage costs and obsolescence risk. Conversely, a low DOH might indicate efficient inventory management but could also potentially signal stockouts and lost sales opportunities.

It would be essential to further investigate the reasons behind the fluctuations in IDEXX's DOH and assess the company's inventory management practices to determine their effectiveness in optimizing inventory levels and aligning them with sales demands.