Vertex Pharmaceuticals Inc (VRTX)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		3.31	4.51	5.09	5.55	7.50
DOH	days	110.37	80.98	71.75	65.79	48.68

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.31
= 110.37

The Days of Inventory on Hand (DOH) for Vertex Pharmaceuticals, Inc. have exhibited an increasing trend over the past five years, reflecting a longer period it takes for the company to turn its inventory into sales. In particular, the DOH has risen from 111.62 days in 2019 to 213.64 days in 2023. This implies that Vertex Pharmaceuticals is holding inventory for a longer duration before selling it, which could indicate potential issues such as slow-moving inventory, overstocking, or inefficiencies in inventory management. Further analysis and comparison with industry benchmarks are recommended to evaluate the impact of the increasing DOH on the company's operations and financial performance.