Incyte Corporation (INCY)

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		4.05	4.27	6.65	5.41	4.93	4.18	3.25	4.63	5.41	6.73	8.27	7.98	8.00	7.48	7.53	8.51	10.02	14.65	15.80	13.83
DOH	days	90.14	85.42	54.85	67.45	74.05	87.33	112.40	78.82	67.45	54.21	44.14	45.75	45.65	48.81	48.50	42.88	36.42	24.92	23.09	26.39

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.05
= 90.14

The days of inventory on hand (DOH) for Incyte Corp. have varied over the past eight quarters. In Q4 2023, the company had 90.14 days of inventory on hand, which was higher than the previous quarter but lower than in Q2 2023. The DOH was highest in Q2 2022 at 112.40 days and lowest in Q2 2023 at 54.91 days.

A lower DOH indicates that the company is managing its inventory more efficiently and turning its inventory into sales more quickly. Conversely, a higher DOH may suggest overstocking or difficulties in selling the inventory.

It's important for Incyte Corp. to monitor its DOH to ensure optimal inventory management, as excessively high levels of inventory can tie up working capital and increase holding costs, while low levels could lead to stockouts and missed sales opportunities. The company should strive to strike a balance between holding enough inventory to meet demand without carrying excess levels that could impact profitability.