Viatris Inc (VTRS)

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
Inventory turnover		2.59	2.55	2.59	2.60	2.77	2.95	2.93	3.01	3.09	3.05	2.51	1.97	1.56
DOH	days	140.90	143.35	140.97	140.31	131.54	123.89	124.49	121.28	117.93	119.84	145.16	185.22	233.85

December 31, 2023 calculation

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

The days of inventory on hand (DOH) for Viatris Inc have remained relatively stable over the past eight quarters, ranging from a low of 121.28 days in Q2 2022 to a high of 143.35 days in Q3 2023. This indicates that the company is able to manage its inventory efficiently and effectively, maintaining a balance between stocking enough inventory to meet demand while avoiding excess inventory that could lead to increased holding costs.

On average, Viatris Inc holds inventory for about 135 days before it is sold or consumed, suggesting a moderate level of inventory turnover. This metric is important for assessing how quickly the company is able to convert its inventory into sales, thereby impacting its cash flow and profitability.

Overall, the stability of Viatris Inc's DOH indicates a consistent approach to managing inventory levels, which is essential for controlling costs, optimizing working capital, and meeting customer demand in a timely manner.