IDEXX Laboratories Inc (IDXX)
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 | 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 | 5.34 | 4.96 | 5.06 | 5.18 | |
| DOH | days | 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 | 68.35 | 73.60 | 72.18 | 70.45 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.87
= 94.36
Idexx Laboratories, Inc.'s days of inventory on hand (DOH) has shown a fluctuating trend over the past eight quarters. In Q4 2023, the DOH was 94.36 days, which was a decrease compared to the previous quarter, indicating that the company held its inventory for a shorter period. However, it is worth noting that the DOH in Q4 2023 is still higher than in Q3 and Q2 of the same year.
Overall, the trend in DOH has been gradually increasing since Q1 2022, where it stood at 81.15 days. This increase suggests that Idexx Laboratories, Inc. has been holding its inventory for a longer period over the past two years. A rising DOH could signal inefficiencies in inventory management, tying up capital and potentially indicating challenges in forecasting demand accurately.
It would be advisable for the company to closely monitor its inventory levels and strive to optimize its inventory turnover to ensure efficient operations and maintain healthy liquidity levels. Regularly reviewing and adjusting inventory policies and supply chain management practices may help in reducing the DOH metric and improving overall operational efficiency.
Peer comparison
Dec 31, 2023