Organon & Co (OGN)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Inventory turnover		3.49	4.14	4.55
DOH	days	104.66	88.19	80.22

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.49
= 104.66

Organon & Co.'s days of inventory on hand (DOH) has shown an increasing trend from 2019 to 2020, followed by a decrease in 2021, a slight increase in 2022, and a significant rise in 2023. The company held inventory for an average of 171.91 days in 2019, which decreased to 143.89 days in 2020 before slightly increasing to 140.21 days in 2021. In 2022, there was a further increase to 159.59 days, and a substantial jump to 190.84 days in 2023.

This rising trend in DOH could indicate several things, such as slower inventory turnover, potential inefficiencies in inventory management, overstocking, changing customer preferences affecting demand forecasting, or challenges in the supply chain leading to excess inventory. It is essential for Organon & Co. to closely monitor and address the factors contributing to this upward trend in DOH to optimize inventory levels, ensure efficient operations, and improve overall financial performance.