Supernus Pharmaceuticals Inc (SUPN)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		0.00	5.11	4.45	5.33	6.63
DOH	days	—	71.48	82.04	68.52	55.04

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.00
= —

The days of inventory on hand (DOH) ratio measures how many days, on average, a company holds its inventory before selling it. A lower DOH indicates a more efficient inventory management system, while a higher DOH suggests slower inventory turnover or potentially obsolete inventory.

Supernus Pharmaceuticals Inc's DOH has fluctuated over the past five years, ranging from 336.24 days in 2020 to 583.39 days in 2019. The trend indicates some variability in the company's inventory management efficiency.

The DOH was at its lowest in 2020 at 336.24 days, which could indicate improved inventory turnover efficiency that year. However, the DOH increased in 2021 and 2022, reaching a high of 417.99 days in 2021 and 383.08 days in 2022. This increase suggests a longer period of holding inventory before selling, which could lead to higher carrying costs and potentially increased risk of obsolescence.

In 2023, the DOH decreased to 337.24 days, showing a potential improvement in inventory turnover efficiency compared to the previous year. However, Supernus Pharmaceuticals Inc may still need to focus on optimizing its inventory management to ensure that inventory is not tying up excessive resources for extended periods.

Overall, the analysis of Supernus Pharmaceuticals Inc's DOH indicates fluctuations in inventory management efficiency over the years, with a need for the company to maintain a balance between inventory levels and sales to improve operational performance and financial health.