Thermo Fisher Scientific Inc (TMO)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Inventory turnover		5.04	4.60	4.78	4.87	4.97	4.74	4.55	4.53	4.51	4.19	3.93	3.76	3.76	3.78	3.91	3.89	3.90	3.79	3.79	4.03
DOH	days	72.43	79.33	76.32	74.98	73.42	76.99	80.25	80.64	80.91	87.01	92.82	96.99	97.15	96.57	93.40	93.75	93.59	96.28	96.24	90.62

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.04
= 72.43

Thermo Fisher Scientific Inc's Days of Inventory on Hand (DOH) fluctuated over the analyzed period from March 31, 2020, to December 31, 2024. The DOH ranged from a high of 97.15 days on December 31, 2021, to a low of 73.42 days on December 31, 2023.

In general, a higher DOH indicates that the company is holding more inventory relative to its sales, which could tie up capital and indicate potential inefficiencies in inventory management. Conversely, a lower DOH suggests efficient inventory management, as the company is selling its inventory more quickly.

Thermo Fisher Scientific Inc saw a decreasing trend in DOH from the end of 2021 to the end of 2023, reaching its lowest point of 73.42 days. This reduction might indicate improved inventory turnover and more efficient inventory management practices. However, a slight increase in DOH was observed in the following periods, which could suggest a buildup of inventory relative to sales.

Overall, the company's DOH trend fluctuated over the period, indicating varying levels of efficiency in managing its inventory. Further analysis and comparison with industry benchmarks would provide better insights into Thermo Fisher Scientific Inc's performance in this aspect.