Stryker Corporation (SYK)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		1.54	1.72	1.85	1.52	1.74
DOH	days	237.59	212.22	197.00	240.90	209.66

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.54
= 237.59

Stryker Corp.'s days of inventory on hand (DOH) has shown fluctuations over the past five years. In 2023, the company had an average of 237.59 days of inventory on hand, a notable increase from the previous year's 212.22 days. This suggests that Stryker may have experienced challenges in managing its inventory efficiently, possibly leading to increased holding costs and potentially tying up more working capital.

Comparing to 2021, where the DOH was 197.00 days, it is apparent that there has been a gradual upward trend in inventory holding period. The higher DOH in 2023 compared to 2021 may indicate a slower inventory turnover rate, which could impact Stryker's liquidity and profitability.

However, in 2020 and 2019, the DOH was 240.90 days and 230.90 days, respectively. This indicates that the company's inventory management was less efficient during those years compared to 2023. Stryker might have implemented measures to address excess inventory levels, leading to the improvement seen in 2021.

Overall, the increasing trend in DOH over the past two years warrants further investigation into Stryker's inventory management practices to optimize working capital, reduce carrying costs, and improve operational efficiency.