Sarepta Therapeutics Inc (SRPT)

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	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	Jun 30, 2019
Inventory turnover		1.42	1.59	2.06	2.02	2.44	2.23	1.85	1.78	1.45	1.55	1.03	1.14	1.28	1.37	1.43	1.75	1.78	1.67	1.61	1.57
DOH	days	257.17	229.52	177.52	180.87	149.88	163.73	197.05	204.98	251.69	236.11	355.90	321.02	285.83	265.80	255.91	208.79	205.34	218.98	226.17	232.22

March 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.42
= 257.17

Days of Inventory on Hand (DOH) is a financial ratio that measures how many days, on average, a company holds onto its inventory before selling it. A lower DOH indicates that a company is selling its inventory more quickly, while a higher DOH suggests slower turnover.

In the case of Sarepta Therapeutics Inc, the DOH has fluctuated over the past few years. From December 2019 to March 2020, the DOH decreased from 226.17 days to 205.34 days, indicating a more efficient management of inventory during that period. However, the DOH started to rise again, reaching a peak of 355.90 days in September 2021, which suggests a significant slowdown in inventory turnover.

Subsequently, there was a decreasing trend in DOH from September 2021 to March 2023, implying improved efficiency in managing inventory levels. Despite some fluctuations, the DOH has generally remained high, indicating that Sarepta Therapeutics Inc may be carrying excess inventory or facing challenges in selling its products expeditiously.

It is important for the company to closely monitor its inventory levels and take steps to optimize inventory management to improve cash flow and profitability. Efforts to align production with demand, streamline supply chain processes, and accurately forecast sales can help lower the DOH and enhance overall operational efficiency for Sarepta Therapeutics Inc.