Vertex Pharmaceuticals Inc (VRTX)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		2.53	2.76	3.05	3.22	3.31	3.29	3.67	3.97	4.51	5.23	5.24	5.53	5.09	4.97	4.95	5.17	5.37	6.00	6.41	7.06
DOH	days	144.45	132.47	119.51	113.25	110.37	111.06	99.35	92.00	80.98	69.84	69.64	66.05	71.75	73.47	73.70	70.54	68.02	60.86	56.94	51.69

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.53
= 144.45

Based on the provided data for Vertex Pharmaceuticals Inc, the days of inventory on hand (DOH) have shown an increasing trend over the last few years. The DOH has increased from 51.69 days as of March 31, 2020, to 144.45 days as of December 31, 2024.

A high DOH indicates that the company is taking a longer time to sell its inventory, which could potentially lead to higher carrying costs and obsolescence risks. It is crucial for companies to strike a balance between maintaining optimal inventory levels to meet demand and avoiding excessive inventory levels that tie up capital and resources.

The significant increase in DOH observed for Vertex Pharmaceuticals Inc suggests a need for closer monitoring and management of inventory levels to ensure efficient operations. The company may need to evaluate its inventory management strategies, demand forecasting techniques, production planning processes, and supply chain efficiencies to address the rising DOH trend and optimize its inventory turnover.