Solventum Corp. (SOLV)

Days of inventory on hand (DOH)

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022
Inventory turnover		4.00	4.19	4.19	4.08	3.95
DOH	days	91.24	87.09	87.10	89.56	92.41

March 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.00
= 91.24

The days of inventory on hand (DOH) for Solventum Corp. has shown a fluctuating trend over the past few quarters. As of March 31, 2024, the company had 91.24 days worth of inventory on hand, which increased from the previous quarter's DOH of 87.09 days as of December 31, 2023. This suggests that the company may be carrying more inventory relative to its sales volume.

Looking back over the past year, the DOH has generally been in the range of high 80s to low 90s days, indicating that Solventum Corp. tends to hold a considerable amount of inventory on hand. While this can provide a buffer against supply chain disruptions, excessive inventory levels can tie up working capital and increase storage costs.

Further analysis and comparison with industry benchmarks would be beneficial to determine whether Solventum Corp.'s DOH is in line with its peers and industry norms. Monitoring this ratio over time can help assess the company's inventory management efficiency and potential impacts on its overall financial performance.