Merck & Company Inc (MRK)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		4.60	4.64	5.31	4.30	5.37
DOH	days	79.28	78.61	68.80	84.84	68.00

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.60
= 79.28

The days of inventory on hand (DOH) metric for Merck & Company Inc has shown some fluctuations over the years based on the provided data.

- As of December 31, 2020, the DOH was at 68.00 days, indicating that the company held its inventory for approximately 68 days before selling it.
- By December 31, 2021, the DOH increased to 84.84 days, reflecting a longer period of holding inventory, which may suggest potential inefficiencies in inventory management or changes in demand patterns.
- Subsequently, the DOH decreased to 68.80 days by December 31, 2022, signaling a more efficient inventory turnover compared to the previous year.
- However, by December 31, 2023, the DOH rose again to 78.61 days, suggesting a potential buildup of inventory or slower sales turnover.
- Finally, as of December 31, 2024, the DOH remained elevated at 79.28 days, indicating that Merck & Company Inc continues to hold its inventory for an extended period.

Overall, the trend in the days of inventory on hand for Merck & Company Inc indicates some variability in inventory management efficiency over the years, with periods of improvement and deterioration. Monitoring this metric is crucial for assessing the company's inventory control strategies and operational effectiveness.