ResMed Inc (RMD)

Days of inventory on hand (DOH)

		Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		3.71	3.65	3.24	3.02	2.77	2.59	2.48	2.73	3.14	3.48	3.78	4.30	4.56	3.78	3.48	3.01	2.97	3.40	3.13	3.22
DOH	days	98.42	99.99	112.72	120.90	131.57	140.85	147.25	133.92	116.39	104.86	96.46	84.81	80.13	96.67	104.74	121.43	122.79	107.26	116.63	113.34

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.71
= 98.42

The days of inventory on hand (DOH) for ResMed Inc have fluctuated over the past few quarters. The trend shows an increase in inventory holding period from the end of 2019 through 2020, peaking in Q1 2021 at 147.25 days. Since then, there has been a gradual decline in DOH, with some fluctuations observed.

The recent data indicates a DOH of 98.42 days as of June 30, 2024, down from 99.99 days in the previous quarter. This decrease may suggest that ResMed has been managing its inventory more efficiently in the current period.

The average DOH over the analyzed period was approximately 112.61 days, indicating that ResMed tends to hold inventory for an extended period compared to industry benchmarks. A high DOH may imply excess or slow-moving inventory, leading to increased holding costs and potential obsolescence risks.

Overall, ResMed's management should continue to monitor inventory levels closely and strive to optimize the balance between having enough inventory to meet demand while minimizing holding costs and potential risks associated with excess inventory.