Pacira Pharmaceuticals Inc (PCRX)

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		1.77	2.06	2.28	2.28	2.07	1.82	1.59	1.40	1.42	2.03	2.02	1.84	1.81	1.66	1.59	1.83	1.83	1.64	1.81	1.94
DOH	days	206.25	177.13	160.27	159.90	175.94	200.31	228.95	260.98	256.47	179.66	180.62	198.25	201.12	219.58	229.11	199.54	199.40	222.57	201.31	188.09

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.77
= 206.25

The Days of Inventory on Hand (DOH) for Pacira BioSciences Inc have been fluctuating over the past eight quarters. The company's DOH ranged from a high of 260.98 days in Q1 2022 to a low of 159.90 days in Q1 2023.

The decreasing trend from Q2 2022 to Q1 2023 indicates the company has been managing its inventory more efficiently, potentially by reducing excess inventory levels or improving inventory turnover. However, the DOH increased again in Q4 2023 compared to the previous quarter, which may suggest a build-up of inventory that could lead to higher carrying costs or potential liquidity issues.

Overall, the company should continue to monitor and optimize its inventory management processes to ensure a balance between maintaining adequate inventory levels to meet demand and minimizing excess inventory holding costs. It is also important to assess the reasons behind the recent increase in DOH to address any potential risks or inefficiencies in the supply chain.