Tandem Diabetes Care Inc (TNDM)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.01 | 2.41 | 3.49 | 4.76 | 3.74 | |
| DOH | days | 121.18 | 151.69 | 104.47 | 76.61 | 97.60 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.01
= 121.18
The days of inventory on hand (DOH) for Tandem Diabetes Care Inc have shown fluctuations over the past few years. As of December 31, 2020, the company had 97.60 days of inventory on hand, which decreased to 76.61 days by December 31, 2021. However, there was a significant increase in DOH to 104.47 days by December 31, 2022, followed by a notable surge to 151.69 days by December 31, 2023. Subsequently, the DOH decreased to 121.18 days by December 31, 2024.
The fluctuation in days of inventory on hand indicates changes in the efficiency of managing inventory levels. A higher DOH could suggest overstocking or slowing sales, potentially leading to increased storage costs and inventory obsolescence. Conversely, a lower DOH may imply stockouts or strong demand, risking potential lost sales.
It is crucial for Tandem Diabetes Care Inc to closely monitor its inventory management practices to optimize efficiency, minimize carrying costs, and ensure timely fulfillment of customer orders. Periodic evaluation of inventory turnover and sales trends can help the company maintain an appropriate balance between inventory levels and customer demand.
Peer comparison
Dec 31, 2024