Tandem Diabetes Care Inc (TNDM)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		4.73	6.63	8.75	7.10	6.92
DOH	days	77.24	55.09	41.72	51.41	52.75

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.73
= 77.24

The days of inventory on hand (DOH) for Tandem Diabetes Care Inc have exhibited fluctuations over the past five years, as follows:

- In 2019, the company had 106.56 days of inventory on hand, indicating the number of days it would take to sell its entire inventory.
- In 2020, the DOH decreased to 97.60 days, possibly suggesting improved inventory management efficiency or an adjustment in inventory levels.
- By the end of 2021, the DOH further decreased to 76.61 days, signaling a significant enhancement in inventory turnover efficiency.
- However, by the end of 2022, the DOH increased to 104.47 days, reversing the previous trend and pointing towards a potential build-up of inventory relative to sales.
- Finally, at the end of 2023, the DOH surged to 151.69 days, reflecting a substantial increase in the number of days it would take for the company to sell its inventory, which may raise concerns about excess inventory levels or potential inventory management inefficiencies.

In summary, Tandem Diabetes Care Inc's DOH has shown fluctuating trends over the last five years, with a notable increase in the number of days of inventory on hand by the end of 2023, indicating a need for further examination into the company's inventory management practices.