Pfizer Inc (PFE)

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		4.28	4.29	3.95	4.82	5.84	5.36	5.15	5.14	5.03	3.91	3.12	2.80	2.79	2.95	3.16	3.26	3.98	3.53	3.53	3.68
DOH	days	85.21	85.12	92.47	75.72	62.53	68.08	70.93	70.95	72.60	93.41	116.98	130.29	130.96	123.66	115.32	111.87	91.61	103.48	103.49	99.13

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.28
= 85.21

Days of Inventory on Hand (DOH) is a crucial metric that reflects how efficiently a company manages its inventory. A high DOH indicates slow-moving inventory and potential obsolescence risks, while a low DOH may signal stockouts or insufficient inventory to meet demand.

Analyzing Pfizer Inc.'s DOH over the past eight quarters reveals fluctuations in inventory management. In Q4 2023, Pfizer had 149.03 days of inventory on hand, which was higher compared to the previous quarters. This increase may suggest a buildup of inventory, possibly due to changing demand patterns, production delays, or supply chain disruptions.

The trend of increasing DOH from Q1 2023 to Q4 2023 is noteworthy and warrants further investigation. While a slight increase in DOH can be beneficial during peak demand periods to prevent stockouts, sustained high DOH levels may tie up capital in excess inventory and lead to higher storage costs.

Comparing the current DOH to the same period in the previous year, Q4 2022 had a lower DOH at 95.45 days. This suggests a shift in Pfizer's inventory management practices or market conditions that have influenced the company's inventory levels.

Overall, Pfizer's DOH trend indicates fluctuations in inventory management efficiency, necessitating a deeper analysis of factors driving these changes. Monitoring and optimizing inventory levels will be crucial for Pfizer to strike a balance between meeting customer demand and minimizing carrying costs.