Merck & Company Inc (MRK)

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		4.64	4.79	4.91	4.98	5.15	5.29	5.26	4.79	4.46	5.40	5.50	4.75	5.36	4.27	4.54	4.80	4.65	4.81	4.61	4.70
DOH	days	78.64	76.17	74.39	73.36	70.85	69.01	69.33	76.22	81.90	67.65	66.34	76.77	68.08	85.57	80.45	76.08	78.52	75.96	79.17	77.60

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.64
= 78.64

The days of inventory on hand (DOH) for Merck & Co Inc has shown a fluctuating trend over the past eight quarters. In Q4 2023, the DOH stood at 143.91 days, indicating an increase compared to the previous quarter. This suggests that Merck & Co Inc may be holding onto inventory for a longer period before selling it.

The trend over the past few quarters has been somewhat volatile, with occasional decreases followed by increases in the DOH metric. Q1 2023 saw a noticeable decrease in DOH to 134.11 days, which was the lowest point in the past two years. However, this was followed by an upward trend in subsequent quarters.

Comparing the current DOH to the same quarter in the previous year, there has been a significant increase. In Q4 2022, the DOH was at 123.92 days, indicating that Merck & Co Inc has been holding inventory for a longer period in the most recent quarter.

Overall, a high DOH level may indicate inefficiencies in inventory management, tying up capital in unsold inventory and potentially increasing holding costs. Analysts and investors should monitor this metric closely to assess the effectiveness of Merck & Co Inc's inventory management strategies.