Pacira BioSciences, Inc. (PCRX)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		1.36	1.77	2.07	1.42	1.81
DOH	days	268.31	206.25	175.94	256.47	201.12

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.36
= 268.31

The days of inventory on hand (DOH) for Pacira BioSciences, Inc. has shown fluctuations over the past five years. At the end of December 31, 2020, the DOH stood at 201.12 days, increasing to 256.47 days by December 31, 2021. However, there was a significant decrease in DOH to 175.94 days by December 31, 2022. Subsequently, by December 31, 2023, the DOH increased slightly to 206.25 days, and further surged to 268.31 days by the end of December 31, 2024.

This trend indicates that Pacira BioSciences, Inc. has experienced fluctuations in the efficiency of managing its inventory levels over the years. A higher number of days of inventory on hand may suggest potential issues such as overstocking or slow turnover of inventory, which can tie up working capital and lead to increased storage costs. Conversely, a lower DOH reflects a more efficient management of inventory, which could positively impact cash flow and profitability. It would be advisable for the company to closely monitor its inventory levels and implement strategies to optimize inventory management in order to improve operational efficiency and financial performance.