Johnson & Johnson (JNJ)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		4.46	4.86	4.92	5.82	5.96
DOH	days	81.87	75.09	74.17	62.71	61.24

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.46
= 81.87

Based on the data provided, Johnson & Johnson's days of inventory on hand (DOH) has been gradually increasing over the years. In December 2020, the DOH was 61.24 days, which increased to 62.71 days by December 2021. Subsequently, there was a more significant increase to 74.17 days by December 2022, followed by a slight increase to 75.09 days by December 2023. The trend continued with a further increase to 81.87 days by December 2024.

A rising trend in DOH may imply that Johnson & Johnson is taking longer to sell its inventory, which could indicate inefficiencies in inventory management or potentially slowing sales. It is essential for the company to monitor and manage its inventory effectively to avoid excess carrying costs and potential obsolescence. Further analysis of the company's sales trends, production levels, and supply chain efficiencies would provide more insights into the reasons behind the increasing DOH.