Pfizer Inc (PFE)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		4.87	5.84	5.03	2.79	3.98
DOH	days	74.99	62.53	72.60	130.96	91.61

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.87
= 74.99

Pfizer Inc.'s days of inventory on hand (DOH) has fluctuated over the past five years. In 2023, the DOH was 149.03 days, indicating that, on average, Pfizer held inventory for about 149 days before selling it. This was a significant increase compared to the previous year, where the DOH was 95.45 days.

The DOH for 2023 was higher than that of 2021, where it was 107.28 days, suggesting that Pfizer took longer to sell its inventory in 2023. The sharp increase in DOH from 2021 to 2023 might indicate potential inefficiencies in inventory management during the period.

However, when compared to 2020 and 2019, where the DOH was 337.87 days and 295.85 days, respectively, the 2023 DOH seems relatively lower, indicating an improvement in inventory turnover efficiency in recent years.

Overall, a lower DOH is generally preferable as it signifies faster inventory turnover, which could lead to reduced storage costs, improved cash flow, and better responsiveness to changes in demand. Pfizer may need to continue monitoring and optimizing its inventory management practices to maintain an efficient balance between maintaining adequate inventory levels and minimizing excess stock.