Veracyte Inc (VCYT)

The analysis of Veracyte Inc.'s days of inventory on hand (DOH) over the specified period reveals a varying trend. At the end of December 2020, the company's DOH was recorded at 41.00 days, indicating the period it took to sell its inventory. This figure increased significantly by December 2021 to 55.07 days, representing a rise of approximately 34.4%, which suggests a longer duration to convert inventory into sales during that year.

Following this increase, the DOH slightly declined to 51.36 days by December 2022, reflecting a modest reduction of about 6.8% from the 2021 level but remaining notably higher than the 2020 figure. This indicates a slight improvement in inventory turnover, although the company still maintains a relatively extended inventory period compared to 2020.

The trend continued with a marginal increase to 52.14 days at the end of December 2023, suggesting stabilization at a higher inventory holding period. This indicates that Veracyte Inc. maintained its inventory for roughly two months and a half during that year, which is consistent with a relatively steady but elongated inventory duration.

By December 2024, the DOH slightly decreased to 50.82 days, representing an improvement of approximately 2.4% from the previous year. This slight reduction could reflect efforts to optimize inventory management, leading to a modest increase in inventory turnover efficiency.

Overall, the data indicates that Veracyte Inc. experienced a notable increase in inventory holding periods after 2020, with a peak around 2021. Since then, there has been a tendency towards slight improvements, although the inventory turnover remains relatively slow compared to pre-2021 levels. The fluctuations suggest a period of adjustments in inventory management strategies, possibly influenced by product lifecycle, supply chain considerations, or changes in demand patterns.

Peer comparison

Dec 31, 2024