Eli Lilly and Company (LLY)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		2.37	2.22	2.44	2.43	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
DOH	days	154.20	164.77	149.38	150.02	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

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.37
= 154.20

Based on the data provided, Eli Lilly and Company's days of inventory on hand (DOH) fluctuated over the period from March 31, 2020, to December 31, 2024. The DOH ranged from a low of 98.50 days on December 31, 2021, to a high of 164.77 days on September 30, 2024.

During the observed period, there were certain peaks and troughs in the DOH metric which may indicate changes in inventory management practices or fluctuations in demand and supply dynamics. It is important to note that a high DOH value indicates that the company is holding excess inventory relative to its sales, which may tie up working capital and lead to higher holding costs.

Overall, a thorough analysis of the trend in DOH can provide insights into Eli Lilly and Company's inventory management efficiency, supply chain effectiveness, and potential inventory obsolescence risks. It is essential for the company to monitor and optimize its inventory levels to strike a balance between meeting customer demand and minimizing carrying costs.