ResMed Inc (RMD)
Days of inventory on hand (DOH)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.71 | 2.78 | 3.14 | 4.56 | 2.97 | |
| DOH | days | 98.42 | 131.43 | 116.39 | 80.13 | 122.80 |
June 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.71
= 98.42
ResMed Inc's days of inventory on hand (DOH) has fluctuated over the past five years, ranging from 80.13 days in 2021 to 131.43 days in 2023. In the most recent period ending June 30, 2024, the company had DOH of 98.42 days. This indicates that, on average, ResMed holds its inventory for approximately 98.42 days before selling it.
A lower DOH value suggests the company is managing its inventory more efficiently and is able to sell its products faster, which can contribute to better liquidity and working capital management. Conversely, a higher DOH value may indicate overstocking or slow-moving inventory, potentially tying up cash and leading to higher holding costs.
It is important for ResMed to monitor its DOH closely to strike a balance between ensuring product availability for customers and minimizing holding costs. By analyzing trends in DOH over time, the company can assess the effectiveness of its inventory management strategies and make adjustments as needed to optimize its operations and financial performance.
Peer comparison
Jun 30, 2024