Insulet Corporation (PODD)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		1.33	1.44	1.14	2.09	5.56
DOH	days	273.55	253.32	319.20	174.85	65.69

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.33
= 273.55

Insulet Corporation's days of inventory on hand (DOH) has shown fluctuations over the past five years. In 2019, the company had 142.94 days of inventory on hand, which increased to 174.85 days in 2020. The DOH further rose to 319.20 days in 2021, reflecting a significant increase. However, in the following years, there was a slight decrease in the DOH with 253.32 days in 2022 and 273.55 days in 2023.

The higher DOH indicates that Insulet Corporation is carrying more inventory relative to its sales. This could suggest potential issues such as overstocking or inefficiencies in inventory management. Conversely, a lower DOH may indicate leaner inventory levels, which can be positive in terms of reducing carrying costs and improving liquidity.

It is important for the company to closely monitor and manage its inventory levels to ensure optimal balance between having enough inventory to meet customer demand without tying up excessive capital in unsold goods. Further analysis of the reasons behind the fluctuations in DOH over the years can provide insights into the effectiveness of Insulet Corporation's inventory management strategies.