Solventum Corp. (SOLV)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Inventory turnover | 4.24 | 3.93 | 4.00 | — | |
| DOH | days | 86.17 | 92.76 | 91.36 | — |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.24
= 86.17
The days of inventory on hand (DOH) for Solventum Corp. have shown a decreasing trend over the past few years. The DOH decreased from 92.76 days in 2022 to 86.17 days in 2023, indicating that the company on average held inventory for a shorter period in 2023 compared to 2022.
Although there is no data available for 2020, it is evident that the company has been actively managing its inventory levels more efficiently since 2021. A lower DOH signifies that Solventum Corp. is selling its inventory at a faster rate or managing its inventory levels more effectively, which can lead to reduced holding costs and potential improvements in liquidity.
However, a single ratio like DOH should be analyzed in conjunction with other financial metrics to provide a more comprehensive view of the company's overall operational efficiency and inventory management practices.
Peer comparison
Dec 31, 2023