Thermo Fisher Scientific Inc (TMO)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		4.98	4.97	4.51	3.76	3.90
DOH	days	73.35	73.42	80.91	97.15	93.59

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.98
= 73.35

Thermo Fisher Scientific Inc's days of inventory on hand (DOH) has shown a trend of decreasing over the years from 2020 to 2024. In 2020, the DOH was 93.59 days, which increased slightly to 97.15 days by the end of 2021. However, from 2022 onwards, there was a notable decline in DOH with figures of 80.91 days in 2022, 73.42 days in 2023, and further down to 73.35 days in 2024.

This decreasing trend in DOH indicates that Thermo Fisher Scientific Inc has been managing its inventory more efficiently over the years, which can be seen as a positive indication. A lower DOH means that the company is selling its inventory quicker and is able to turn it into cash faster, potentially leading to reduced carrying costs and improved cash flows.

Overall, the decreasing trend in Thermo Fisher Scientific Inc's days of inventory on hand reflects efficient inventory management practices and a potentially positive impact on the company's financial performance.