United Therapeutics Corporation (UTHR)

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		6.56	3.71	3.15	2.95	1.64	5.59	4.74	3.64	4.22	3.42	3.23	3.27	3.19	1.96	2.16	1.55	1.26	1.28	1.44	1.81
DOH	days	55.66	98.32	115.98	123.80	222.40	65.26	77.08	100.35	86.44	106.67	113.11	111.62	114.56	186.32	169.03	235.32	289.89	284.56	253.36	201.11

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.56
= 55.66

The Days of Inventory on Hand (DOH) for United Therapeutics Corp has fluctuated over the past eight quarters. In Q1 2022, the company held inventory for an average of 256.72 days, which decreased to 245.58 days in Q4 2022. However, in the most recent quarter, Q4 2023, the DOH increased to 158.47 days, indicating a significant improvement in managing inventory levels.

The trend in DOH over the past two years shows a general decrease from the peak in Q2 2022 when the company held inventory for an average of 278.32 days. This reduction suggests that United Therapeutics Corp has been able to better control inventory levels and improve inventory turnover efficiency.

Overall, the decreasing trend in DOH is a positive indication of effective inventory management by the company, leading to potential cost savings and improved liquidity. It is important for United Therapeutics Corp to continue monitoring and optimizing inventory levels to ensure efficient operations and profitability.