Innoviva Inc (INVA)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		2.95	1.24	—	—	—
DOH	days	123.89	295.10	—	—	—

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.95
= 123.89

The days of inventory on hand (DOH) for Innoviva Inc have shown significant fluctuations over the years. In 2023, the DOH stands at 348.71 days, indicating that the company holds its inventory for approximately a year. This suggests that Innoviva may be experiencing challenges in managing its inventory efficiently, potentially leading to higher carrying costs and decreased liquidity.

The substantial decrease from 1,479.19 days in 2022 to 348.71 days in 2023 may signify a more effective inventory management strategy implemented by the company during this period. However, it is crucial to note that a DOH of over a year still raises concerns about the company's ability to optimize its inventory levels and turnover efficiently.

The lack of data for 2021, 2020, and 2019 makes it difficult to provide a longitudinal analysis. Still, the substantial reduction in the DOH from 2022 to 2023 points towards potential improvements in Innoviva's inventory management practices. Monitoring this ratio over time can help assess the company's ongoing efforts to enhance operational efficiency and financial performance.