Solventum Corp. (SOLV)

Days of inventory on hand (DOH)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022
Inventory turnover 3.79 3.87 4.08 4.00 4.19 4.19 4.08 3.95 3.93
DOH days 96.26 94.42 89.46 91.24 87.09 87.10 89.56 92.41 92.76

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.79
= 96.26

The days of inventory on hand (DOH) for Solventum Corp. has shown some fluctuations over the periods analyzed.

As of December 31, 2022, the company had an inventory turnover rate of 92.76 days, indicating that on average, it takes approximately 92.76 days for the company to sell its inventory. This decreased slightly to 92.41 days by March 31, 2023, and further dropped to 89.56 days by June 30, 2023.

However, there was a reversal in trend as the DOH increased to 87.10 days by September 30, 2023, and hovered around that level through December 31, 2023. The trend continued in the first half of 2024, with the DOH standing at 91.24 days as of March 31, 2024, and 89.46 days by June 30, 2024.

The DOH then took an upward turn, reaching 94.42 days by September 30, 2024, and further increasing to 96.26 days by December 31, 2024. This rising trend could suggest that the company may be experiencing difficulties in managing its inventory levels efficiently or facing challenges in selling its products in a timely manner. Further analysis of the company's inventory management practices and market demand for its products may be necessary to address these trends effectively.