Eli Lilly and Company (LLY)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		2.53	3.14	3.71	2.99	3.61
DOH	days	144.35	116.34	98.50	121.96	101.04

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.53
= 144.35

Lilly (Eli) & Co's days of inventory on hand (DOH) has shown variability over the past five years. The company's DOH was 297.52 days as of December 31, 2023, compared to 237.27 days in 2022, 193.96 days in 2021, 264.95 days in 2020, and 246.68 days in 2019.

The increasing trend in DOH from 2019 to 2020 followed by a decrease in 2021 suggests potential inventory management issues or changes in purchasing patterns. The significant spike in 2020 could indicate overstocking or slow-moving inventory, which may have been corrected in 2021 leading to a lower DOH. However, the substantial increase in DOH in 2023 may raise concerns about inventory efficiency and potential risks of obsolete inventory or declining sales.

Further analysis of the company's inventory turnover ratio and comparison with industry benchmarks could provide additional insights into the effectiveness of Lilly(Eli) & Co's inventory management practices. It's crucial for the company to monitor and optimize its inventory levels to ensure efficient operations and maintain profitability.