Thermo Fisher Scientific Inc (TMO)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		2.06	1.97	1.90	1.91	1.82	1.78	1.76	1.77	1.79	1.76	1.78	1.85	1.94	1.90	1.98	2.05	2.09	2.52	2.57	2.64
DOH	days	177.10	185.40	191.85	191.02	200.39	204.64	206.84	206.49	203.60	207.06	204.97	196.95	188.44	192.21	184.47	178.24	175.02	144.95	141.91	138.25

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.06
= 177.10

Thermo Fisher Scientific Inc.'s Days of Inventory on Hand (DOH) has shown a decreasing trend over the past four quarters, indicating an improvement in inventory management efficiency. In Q4 2023, the company had 72.10 days of inventory on hand, which was lower compared to previous quarters. This suggests that the company is able to sell or use up its inventory at a faster rate.

The gradual decline in DOH from 79.26 days in Q4 2022 to 72.10 days in Q4 2023 reflects a positive trend in managing inventory levels. A lower DOH implies that the company is holding less inventory relative to its sales, which can lead to reduced carrying costs, lower levels of obsolete inventory, and improved liquidity.

Overall, the decreasing trend in Thermo Fisher Scientific Inc.'s DOH indicates effective inventory management strategies, potentially leading to better cash flow management and enhanced overall operational efficiency. It is essential for the company to continue monitoring and optimizing its inventory levels to maintain this positive trend in the future.