NeoGenomics Inc (NEO)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 13.85 | 14.37 | 13.26 | 12.71 | 8.76 | |
| DOH | days | 26.35 | 25.41 | 27.53 | 28.73 | 41.68 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 13.85
= 26.35
NeoGenomics Inc's days of inventory on hand (DOH) has shown a downward trend over the past five years, decreasing from 41.68 days as of December 31, 2020, to 26.35 days as of December 31, 2024. This indicates that the company has been more efficient in managing its inventory levels over the period, taking fewer days to sell its inventory.
A lower DOH value suggests that the company is turning over its inventory more quickly, which can lead to reduced carrying costs and the risk of obsolescence. It may also imply improved inventory management practices, such as better demand forecasting and supply chain efficiency.
However, it is essential to note that a very low DOH value could also indicate potential stockouts or challenges in meeting customer demand promptly. Therefore, while a decreasing trend in DOH generally signifies better inventory management, it is important for NeoGenomics to strike a balance between managing inventory efficiently and ensuring adequate stock levels to meet customer needs.