STAAR Surgical Company (STAA)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 0.99 | 1.26 | 1.50 | 1.25 | 1.12 | |
| DOH | days | 367.60 | 289.10 | 243.27 | 293.16 | 327.32 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.99
= 367.60
The days of inventory on hand (DOH) for STAAR Surgical Company have shown variability over the past five years. The trend indicates fluctuations in the efficiency of managing inventory.
In 2023, the DOH increased significantly to 367.60 days, which suggests that STAAR Surgical Company may be holding onto inventory for a longer period before selling it. This could tie up working capital and increase carrying costs.
In 2022, the DOH decreased to 289.10 days, indicating a slight improvement in inventory management efficiency compared to the previous year. However, the level still remains relatively high.
In 2021, the DOH stood at 243.27 days, showing a further reduction in the number of days inventory is held before being sold. This could indicate better inventory turnover and faster cash conversion cycle.
In 2020, the DOH increased to 293.16 days, reversing the positive trend seen in the previous year. This suggests a potential inefficiency in inventory management that year.
In 2019, the DOH was at 327.32 days, indicating a prolonged period of holding inventory before sale. This could potentially impact profitability and liquidity.
Overall, the fluctuating trend in days of inventory on hand for STAAR Surgical Company over the past five years indicates the need for monitoring and potential improvements in inventory management practices to enhance efficiency and optimize working capital utilization.
Peer comparison
Dec 31, 2023