Organon & Co (OGN)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.03 | 1.91 | 2.29 | 2.60 | 3.67 | |
| DOH | days | 179.38 | 190.84 | 159.59 | 140.21 | 99.57 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.03
= 179.38
The days of inventory on hand (DOH) for Organon & Co have shown a significant trend over the past five years. Starting at 99.57 days as of December 31, 2020, the DOH increased to 140.21 days by December 31, 2021, and continued to rise to 159.59 days as of December 31, 2022. Further increasing to 190.84 days by December 31, 2023, the DOH peaked at 179.38 days as of December 31, 2024.
This upward trend in DOH indicates that Organon & Co is carrying inventory for longer periods before selling it. A high DOH could suggest inefficiencies in inventory management, potentially leading to increased carrying costs, obsolete inventory, and reduced liquidity. It is crucial for the company to analyze its inventory turnover rate and implement strategies to optimize inventory levels to improve overall efficiency and profitability.
Peer comparison
Dec 31, 2024