Intuitive Surgical Inc (ISRG)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 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
Inventory turnover		3.28	3.18	3.30	3.43	3.59	3.66	4.10	4.21	4.25	4.39	4.87	5.20	5.53	3.97	3.84	3.52	3.31	3.00	3.03	3.11
DOH	days	111.36	114.81	110.63	106.53	101.75	99.69	89.11	86.65	85.93	83.22	75.00	70.14	66.03	91.83	95.03	103.66	110.26	121.51	120.64	117.23

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.28
= 111.36

The Days of Inventory on Hand (DOH) for Intuitive Surgical Inc has shown some fluctuations over the past few years. From March 31, 2020, to December 31, 2021, the DOH trended downwards, indicating the company was managing its inventory more efficiently, with the DOH decreasing from 117.23 days to 66.03 days. This suggests that the company was able to sell its inventory at a faster rate during this period.

However, from March 31, 2022, there has been an upward trend in DOH, reaching 114.81 days by September 30, 2024. This increase may indicate potential issues such as slower inventory turnover, overstocking, or challenges in managing inventory levels effectively.

It is essential for Intuitive Surgical Inc to monitor its inventory levels closely to ensure optimal balance between holding too much inventory (which ties up capital and incurs storage costs) and having too little inventory (which may lead to stockouts and potentially lost sales). A high DOH may also suggest a need to improve demand forecasting, production planning, or supply chain management to better align inventory levels with sales.

Further analysis and comparison with industry benchmarks or historical data may provide additional insights into the company's inventory management efficiency and help identify areas for improvement.