NeoGenomics Inc (NEO)
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 | 29.32 | 29.11 | 27.65 | 27.67 | 23.92 | 33.64 | 32.26 | 25.56 | 25.83 | 23.03 | 23.39 | 22.94 | 16.13 | 21.44 | 19.66 | 20.65 | 28.30 | 25.68 | 35.20 | 30.18 | |
| DOH | days | 12.45 | 12.54 | 13.20 | 13.19 | 15.26 | 10.85 | 11.32 | 14.28 | 14.13 | 15.85 | 15.60 | 15.91 | 22.64 | 17.02 | 18.57 | 17.68 | 12.90 | 14.21 | 10.37 | 12.09 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 29.32
= 12.45
Days of Inventory on Hand (DOH) is a key ratio that measures how many days, on average, a company holds onto its inventory before it is sold. A lower number of days indicates that inventory is being managed efficiently, while a higher number suggests a slower turnover of inventory.
Analyzing the trend in Neogenomics Inc.'s DOH over the past eight quarters reveals fluctuations in inventory management efficiency. The company experienced a slight decrease in DOH from Q4 2022 to Q1 2023, followed by a consistent increase in each subsequent quarter up to Q3 2023. This indicates a potential slowdown in the turnover of inventory during this period.
The average DOH for the latest four quarters (Q4 2023 to Q1 2023) is approximately 26.77 days. Comparing this to the average DOH of approximately 27.44 days for the previous four quarters (Q3 2022 to Q2 2022), Neogenomics Inc. appears to have improved its inventory management efficiency in the latest period.
While the company's DOH has shown some volatility in recent quarters, investors and stakeholders may want to closely monitor future changes in inventory turnover to ensure optimal utilization of resources and effective management of working capital.