Innoviva Inc (INVA)

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		2.95	2.68	2.20	1.74	1.24	0.72	6.13	—	—	—	—	—	—	—	—	—	—	—	—	—
DOH	days	123.89	136.01	166.16	210.28	295.10	509.67	59.51	—	—	—	—	—	—	—	—	—	—	—	—	—

December 31, 2023 calculation

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

The days of inventory on hand (DOH) measure the average number of days it takes for a company to sell its inventory. A lower DOH indicates better inventory management and higher efficiency in turning inventory into sales.

Innoviva Inc's DOH has fluctuated significantly over the past quarters, ranging from 348.71 days in Q4 2023 to a high of 7,022.98 days in Q3 2022. The extreme values in Q3 2022 and Q4 2022 may be indicative of inventory management issues or irregularities that significantly slowed down the inventory turnover process.

The recent trend shows a decrease in DOH from Q1 2023 to Q4 2023, indicating potential improvements in inventory management efficiency. However, the relatively high DOH figures still warrant attention and further examination to ensure that excess inventory levels are minimized and sales are optimized.

It is essential for Innoviva Inc to continue monitoring and managing its inventory levels effectively to strike a balance between meeting customer demand and controlling carrying costs. Analyzing the reasons behind the fluctuations in DOH and implementing strategies to streamline inventory processes can help enhance operational efficiency and overall financial performance.