West Pharmaceutical Services Inc (WST)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.03 | 4.19 | 4.22 | 4.38 | 4.29 | |
| DOH | days | 72.63 | 87.15 | 86.48 | 83.41 | 85.04 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.03
= 72.63
The days of inventory on hand (DOH) for West Pharmaceutical Services Inc has shown some fluctuations over the past five years.
- As of December 31, 2020, the company held inventory for an average of 85.04 days.
- By December 31, 2021, the DOH decreased slightly to 83.41 days, indicating a potential improvement in inventory management efficiency.
- In the following year, as of December 31, 2022, the DOH increased to 86.48 days, suggesting a possible buildup of inventory or slower inventory turnover.
- The trend continued as of December 31, 2023, with the DOH reaching 87.15 days, indicating a further increase in the number of days it takes for the company to sell its inventory.
- However, by December 31, 2024, the DOH decreased significantly to 72.63 days, signifying a potential adjustment in inventory levels or improved inventory turnover efficiency.
Overall, the fluctuation in the days of inventory on hand for West Pharmaceutical Services Inc over the five-year period may suggest varying inventory management strategies, changes in demand patterns, or operational adjustments within the company. Further analysis and comparison with industry benchmarks may provide additional insights into the company's inventory management performance.
Peer comparison
Dec 31, 2024