Intuitive Surgical Inc (ISRG)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		3.59	4.25	5.53	4.59	4.35
DOH	days	101.75	85.93	66.03	79.45	83.93

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.59
= 101.75

Intuitive Surgical Inc's Days of Inventory on Hand (DOH) has shown fluctuations over the past five years. The DOH measures the number of days a company holds inventory before selling it and is an important indicator of inventory management efficiency.

In 2023, Intuitive Surgical Inc had an elevated DOH of 186.05 days, indicating that the company held inventory for a longer period compared to previous years. This increase could be attributed to various factors such as changes in demand patterns, supply chain disruptions, or inventory management issues.

In 2022, the DOH decreased to 160.90 days, suggesting an improvement in inventory turnover efficiency compared to the previous year. A lower DOH is generally favorable as it indicates that the company is selling its inventory quickly, reducing the risk of obsolescence and carrying costs.

In 2021, the DOH was 122.34 days, the lowest among the five years analyzed. This indicates that Intuitive Surgical Inc efficiently managed its inventory during that year, possibly through effective demand forecasting and inventory control measures.

In 2020, the DOH increased slightly to 146.64 days, indicating a longer holding period for inventory compared to the previous year. This increase may have been influenced by disruptions in the supply chain or changes in market conditions.

In 2019, the DOH was 158.85 days, indicating a higher inventory holding period compared to 2021 but lower than 2020. This suggests that inventory management efficiency in 2019 was relatively better than the following year but still demonstrated room for improvement.

Overall, Intuitive Surgical Inc's DOH has varied over the past five years, reflecting changes in inventory management practices and external factors impacting the business. Monitoring and analyzing the DOH trend can help the company assess its effectiveness in managing inventory levels and optimizing working capital.