Penumbra Inc (PEN)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		1.09	1.11	1.15	0.97	0.97	0.96	0.96	0.95	0.93	0.96	1.01	1.06	1.03	1.03	1.00	0.94	1.01	1.03	0.98	1.08
DOH	days	333.92	328.23	317.31	377.13	376.79	378.41	378.36	385.47	390.84	379.95	360.53	344.33	353.33	354.15	363.29	387.99	360.55	355.28	371.69	336.49

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.09
= 333.92

The days of inventory on hand (DOH) for Penumbra Inc has shown some fluctuations over the years. From March 31, 2020, to December 31, 2024, the trend has been somewhat erratic. The DOH started at a relatively high level of 336.49 days in March 2020, reaching a peak of 390.84 days in December 2022. Subsequently, a decreasing trend was observed, with the DOH dropping to 317.31 days by June 30, 2024.

The average DOH during this period was approximately 360 days, indicating that Penumbra Inc tends to hold its inventory for an extended period before selling it. A high DOH may signify inefficient inventory management or slow inventory turnover, which could tie up resources and impact profitability. On the other hand, a low DOH, like that observed in the latter part of the period, may suggest better management of inventory levels, leading to improved liquidity and potentially lower holding costs.

It is essential for Penumbra Inc to monitor its DOH closely and strike a balance between maintaining sufficient inventory to meet demand and avoiding excess holding costs. Further analysis and comparison with industry benchmarks could provide valuable insights into the effectiveness of the company's inventory management strategies.