Jazz Pharmaceuticals PLC (JAZZ)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		3.27	3.01	1.84	13.10	13.89
DOH	days	111.65	121.21	197.97	27.86	26.28

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.27
= 111.65

The days of inventory on hand (DOH) for Jazz Pharmaceuticals plc have shown fluctuations over the past five years. In 2023, the company's DOH stood at 500.30 days, indicating that on average, it takes approximately 500 days to sell its inventory. This represents an increase from the previous year when DOH was 482.19 days.

The significant spike in DOH in 2021 to 888.34 days suggests that the company may have had challenges in managing its inventory efficiently during that period. However, there was a notable improvement in 2022 and further progress in 2023.

Comparing the most recent two years to earlier ones, it is evident that Jazz Pharmaceuticals has made efforts to streamline its inventory management processes. The decreasing trend from 2020 to 2023 indicates that the company has potentially implemented better inventory control measures, leading to a more efficient turnover of inventory.

Although the current DOH of 500.30 days is relatively high, the downward trend over the past couple of years is a positive sign. However, further monitoring of inventory management practices will be important to ensure ongoing improvement in this area.