Neurocrine Biosciences Inc (NBIX)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 24.30 | 22.12 | 19.12 | 15.48 | 20.47 | |
| DOH | days | 15.02 | 16.50 | 19.09 | 23.59 | 17.83 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 24.30
= 15.02
Neurocrine Biosciences, Inc.'s days of inventory on hand (DOH) has shown a decreasing trend over the last five years, reflecting an improvement in inventory management efficiency. The company managed to reduce its DOH from 849.50 days in 2019 to 352.13 days in 2023. This indicates that the company has been able to convert inventory into sales at a faster rate over the years, which is a positive sign for the company's operations.
A lower DOH value suggests that Neurocrine Biosciences, Inc. is holding less inventory on hand, which can lead to lower holding costs and a more streamlined supply chain. This may also indicate that the company is effectively managing its production levels and demand forecasting, optimizing its inventory turnover.
Overall, the decreasing trend in Neurocrine Biosciences, Inc.'s days of inventory on hand highlights an improvement in the company's inventory management efficiency, which can positively impact its financial performance and operational effectiveness.
Peer comparison
Dec 31, 2023