Eli Lilly and Company (LLY)

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		2.53	2.89	2.90	2.91	3.14	3.68	3.52	3.68	3.71	3.51	3.57	3.48	2.99	2.74	2.83	3.03	3.03	3.24	3.37	3.74
DOH	days	144.35	126.50	126.00	125.24	116.34	99.12	103.61	99.07	98.50	104.02	102.22	105.01	121.96	133.35	128.90	120.33	120.63	112.52	108.27	97.49

December 31, 2023 calculation

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

Lilly(Eli) & Co's days of inventory on hand (DOH) have shown an increasing trend over the past eight quarters, reaching 297.52 days in Q4 2023 from 189.30 days in Q1 2022. This indicates that the company is taking longer to sell its inventory, which may signal potential concerns regarding inventory management efficiency and liquidity. The significant rise in DOH suggests that the company may be facing challenges in managing its inventory levels effectively, resulting in a higher carrying cost and potential obsolescence risks. Investors and stakeholders should closely monitor this metric to assess the company's ability to efficiently manage its inventory and optimize working capital.