United Therapeutics Corporation (UTHR)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 1.96 | 2.30 | 1.44 | 1.31 | 1.25 | |
| DOH | days | 186.09 | 158.47 | 253.78 | 279.49 | 292.07 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.96
= 186.09
United Therapeutics Corporation's days of inventory on hand (DOH) has shown a decreasing trend over the past five years, which indicates an improvement in the company's efficiency in managing its inventory levels.
In December 2020, the DOH stood at 292.07 days, reflecting a high level of inventory relative to the company's sales. However, by December 2024, the DOH declined to 186.09 days, suggesting that the company has been able to streamline its inventory management processes and reduce excess inventory.
The significant decrease in DOH from 2020 to 2024 indicates that United Therapeutics has been able to optimize its inventory turnover, potentially leading to cost savings, improved cash flow, and better overall operational performance. This trend may be attributed to better inventory forecasting, efficient production planning, or enhanced supply chain management practices within the company.
Overall, the downward trend in United Therapeutics Corporation's days of inventory on hand signifies a positive development in the company's operations and financial performance, reflecting effective inventory management strategies and potentially enhancing its competitiveness in the market.
Peer comparison
Dec 31, 2024