Solventum Corp. (SOLV)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		3.79	4.09	3.93	4.00	—
DOH	days	96.21	89.27	92.76	91.36	—

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.79
= 96.21

The days of inventory on hand (DOH) for Solventum Corp. have fluctuated over the past five years. On December 31, 2020, the company did not provide specific data for DOH. However, from December 31, 2021, to December 31, 2024, the DOH values were 91.36 days, 92.76 days, 89.27 days, and 96.21 days, respectively.

The trend indicates that Solventum Corp. has experienced some variability in its inventory management efficiency over the years. The DOH values above 90 days imply that the company, on average, holds its inventory for a relatively extended period before selling it. This can tie up capital and potentially lead to higher carrying costs.

Furthermore, the increase in DOH from 2021 to 2022 followed by a slight decrease in 2023, and another increase in 2024 suggests some fluctuations in the company's inventory turnover rate and inventory management practices. It would be important for Solventum Corp. to assess its inventory management strategies to optimize efficiency and reduce the risk of holding excess inventory for extended periods.