Jazz Pharmaceuticals PLC (JAZZ)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		0.93	0.73	0.76	0.41	1.56
DOH	days	393.44	500.30	482.19	888.34	233.82

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.93
= 393.44

Jazz Pharmaceuticals PLC's Days of Inventory on Hand (DOH) experienced fluctuations over the period from December 31, 2020, to December 31, 2024. The DOH was notably high at 888.34 days as of December 31, 2021, then decreased to 482.19 days by the end of 2022. Subsequently, there was a slight increase to 500.30 days by December 31, 2023, followed by a decrease to 393.44 days as of December 31, 2024.

The high DOH figure in 2021 could indicate potential issues related to inefficient inventory management or slower turnover of inventory. However, the subsequent decrease in DOH in the following years suggests improvements in managing inventory levels or potentially faster inventory turnover.

Overall, it is important for Jazz Pharmaceuticals PLC to continuously monitor and optimize its inventory management processes to ensure optimal levels of inventory on hand, minimize carrying costs, and improve operational efficiency.