Medtronic PLC (MDT)

Days of inventory on hand (DOH)

		Apr 30, 2024	Apr 26, 2024	Apr 30, 2023	Apr 28, 2023	Apr 30, 2022
Inventory turnover		2.15	4.68	2.03	4.42	2.20
DOH	days	169.78	78.03	180.24	82.57	166.08

April 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.15
= 169.78

The days of inventory on hand (DOH) for Medtronic PLC have exhibited fluctuations over the past five years. In April 2022, the DOH stood at 166.08 days, indicating that the company held inventory for approximately 166 days before selling it. This number decreased significantly to 82.57 days by April 2023, suggesting an improvement in inventory management efficiency.

However, in the subsequent year, the DOH increased to 180.24 days in April 2023, signaling a potential buildup of excess inventory or a slowdown in sales. The trend reversed once again by April 2024, with the DOH dropping to 78.03 days, reflecting a swift turnaround in inventory management practices.

Overall, the DOH for Medtronic PLC has shown variability, with periods of both high and low levels. It is crucial for the company to strive for a balance in inventory levels to avoid tying up excess capital in inventory or facing stockouts that could impact sales and customer satisfaction. Close monitoring and adjustment of inventory levels will be key to optimizing operational efficiency and financial performance.