Moderna Inc (MRNA)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		37.46	7.19	2.34	4.23	—
DOH	days	9.74	50.73	155.93	86.29	—

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 37.46
= 9.74

Days of Inventory on Hand (DOH) measures how many days it would take a company to sell its entire inventory.

In the case of Moderna Inc, we observe a significant improvement in its DOH over the years. As of December 31, 2023, Moderna had 21.00 days of inventory on hand, a notable decrease from 78.71 days in 2022 and a substantial improvement from 200.98 days in 2021.

The drastic decrease in DOH reflects better inventory management practices, indicating that Moderna has been more efficient in managing its inventory levels and turning inventory into sales in a timelier manner.

It is important to note that in 2020, Moderna's DOH spiked to 2,140.72 days, which could be due to various factors such as changes in production schedules, disruptions in the supply chain, or abnormal inventory levels related to the COVID-19 pandemic.

Overall, the declining trend in Moderna's DOH is a positive indicator of the company's improving inventory turnover efficiency, which can lead to better cash flow and profitability.