Intuitive Surgical Inc (ISRG)

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		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	3.08	4.20	4.50	4.19
DOH	days	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	118.37	86.98	81.18	87.05

December 31, 2023 calculation

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

Intuitive Surgical Inc's days of inventory on hand (DOH) has exhibited an increasing trend over the past eight quarters, reaching 186.05 days in Q4 2023 from 129.53 days in Q1 2022. This signifies that, on average, Intuitive Surgical holds its inventory for approximately 186.05 days before selling or using it, indicating a longer holding period compared to earlier periods.

The rising DOH may suggest potential concerns such as overstocking, slow inventory turnover, or difficulties in managing production levels effectively. The company may face challenges in forecasting demand accurately or managing its supply chain efficiently, leading to higher inventory carrying costs and potentially tying up working capital.

Further investigation into the reasons behind the prolonged inventory holding period is recommended to identify potential inefficiencies or risks in Intuitive Surgical's operations and mitigate any adverse impacts on its financial performance and overall business health.