Merck & Company Inc (MRK)

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		4.60	4.60	4.45	4.48	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
DOH	days	79.28	79.36	82.05	81.55	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

December 31, 2024 calculation

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

The days of inventory on hand (DOH) for Merck & Company Inc have shown some fluctuations over the periods analyzed.

From March 2020 to June 2020, there was an increase in DOH from 76.08 days to 80.45 days, indicating that the company held more inventory on hand relative to its sales levels. Subsequently, from September 2020 to December 2020, there was a decrease in DOH from 85.57 days to 68.08 days, showing a more efficient management of inventory during that period.

The trend continued with fluctuations in the following periods, showing occasional peaks and troughs in DOH. For example, from June 2021 to September 2021, there was a decrease in DOH from 66.34 days to 67.65 days, which suggests improved inventory management efficiency. However, from December 2021 to March 2022, there was an increase in DOH from 81.90 days to 76.22 days, indicating a potential build-up of inventory.

Overall, the variations in Merck & Company Inc's DOH reflect changes in its inventory management practices and sales performance. It is important for the company to monitor and optimize its inventory levels to ensure efficient operations and cost control.