United Therapeutics Corporation (UTHR)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		6.59	2.69	4.24	1.25	1.26
DOH	days	55.39	135.63	86.17	292.07	289.89

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.59
= 55.39

The days of inventory on hand (DOH) for United Therapeutics Corp have exhibited a decreasing trend over the past five years. From 2019 to 2023, the DOH has decreased from 289.89 days to 158.47 days, indicating a steady improvement in inventory management efficiency.

A lower DOH implies that the company is selling its inventory more quickly, which can be a positive sign of effective inventory management and demand forecasting. This trend suggests that United Therapeutics Corp may have implemented better inventory control measures, leading to reduced holding costs and potentially minimized risk of inventory obsolescence.

By efficiently managing its inventory levels, the company can free up working capital that would have otherwise been tied up in excess inventory. This can contribute to improved cash flow and profitability, as well as a stronger overall financial position.

Overall, the decreasing trend in days of inventory on hand for United Therapeutics Corp reflects positively on the company's operational efficiency and ability to adapt to changing market conditions.