Incyte Corporation (INCY)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 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	Dec 31, 2019
Inventory turnover		5.18	3.93	4.07	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
DOH	days	70.41	92.89	89.65	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

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.18
= 70.41

The days of inventory on hand (DOH) for Incyte Corporation have shown fluctuations over the past few years. The trend indicates that there was an increase in the number of days inventory was held from December 31, 2019, to a peak on June 30, 2022. This increase may be attributed to factors such as changes in demand, production inefficiencies, or inventory management issues.

Following the peak, there was a gradual decrease in DOH until March 31, 2023. However, there was a subsequent increase in inventory holding days through September 30, 2024. It is important to note that high DOH values can be indicative of overstocking or slowed sales, potentially leading to higher inventory costs and reduced liquidity.

The management of Incyte Corporation may consider optimizing inventory levels and improving inventory turnover to reduce DOH and enhance operational efficiency. Monitoring and analyzing DOH trends can provide valuable insights into the company's inventory management practices and overall financial performance.