Merit Medical Systems Inc (MMSI)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		3.63	3.85	4.44	4.86	4.35
DOH	days	100.48	94.71	82.15	75.07	83.98

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.63
= 100.48

The days of inventory on hand (DOH) for Merit Medical Systems, Inc. have exhibited a fluctuating trend over the past five years. The DOH increased from 146.46 days in 2019 to 164.68 days in 2023, indicating that the company held inventory for a longer period in the most recent year. This rise may suggest potential inefficiencies in managing inventory levels or difficulties in selling products quickly.

Although the DOH has been on an upward trajectory, it is crucial to consider industry benchmarks and the nature of Merit Medical's business to evaluate the efficiency of its inventory management. A higher DOH can tie up capital and may lead to increased holding costs, which can impact the company's profitability.

Further analysis of Merit Medical's inventory turnover ratio along with industry comparisons would provide a more comprehensive understanding of how effectively the company is managing its inventory levels and aligning them with sales demand.