Viatris Inc (VTRS)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		2.59	2.77	3.09	1.49	2.85
DOH	days	140.90	131.54	117.93	245.08	128.22

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.59
= 140.90

The Days of Inventory on Hand (DOH) for Viatris Inc has fluctuated over the past five years, indicating varying efficiency levels in managing inventory.

In 2023, the DOH was 140.90 days, showing an increase from the previous year. This suggests that the company took longer to sell its inventory compared to the prior year, which may raise concerns about excessive inventory levels or slowing sales.

The DOH was 131.54 days in 2022, also an increase from 2021. The upward trend in DOH over these two years indicates a potential inefficiency in inventory management, as it took the company longer to turn its inventory into sales.

In 2021, the DOH was 117.93 days, showing an improvement from 2020 where it was significantly high at 245.08 days. The sharp decrease in DOH from 2020 to 2021 suggests that the company made strides in reducing excess inventory levels and optimizing its inventory turnover.

Going back to 2019, the DOH was 128.22 days, relatively close to the 2022 level. This indicates that during that period, Viatris Inc had a similar efficiency in managing its inventory turnover compared to 2022.

Overall, fluctuations in the DOH for Viatris Inc over the past five years highlight the importance of closely monitoring inventory levels and turnover to ensure optimal efficiency and financial performance.