Insulet Corporation (PODD)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		1.45	1.33	1.44	1.14	2.09
DOH	days	250.99	273.55	253.32	319.20	174.85

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.45
= 250.99

Insulet Corporation's days of inventory on hand (DOH) increased from 174.85 days as of December 31, 2020, to 319.20 days as of December 31, 2021, indicating a significant rise in the number of days it takes to sell its inventory. This may suggest potential issues with inventory management efficiency or potential overstocking.

Subsequently, the DOH decreased to 253.32 days as of December 31, 2022, but remained relatively high, indicating that the company is still holding a significant amount of inventory compared to its sales levels. This could potentially tie up working capital and lead to higher storage costs.

In the following years, the DOH increased to 273.55 days as of December 31, 2023, before slightly decreasing to 250.99 days as of December 31, 2024. The fluctuations in DOH over these years may indicate challenges in accurately forecasting sales demand or supply chain disruptions affecting inventory levels.

Overall, the trend in Insulet Corporation's DOH suggests a need for closer monitoring of inventory management practices to optimize working capital utilization, reduce potential obsolescence risk, and enhance operational efficiency.