West Pharmaceutical Services Inc (WST)
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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.82 | 4.65 | 4.43 | 4.40 | 4.72 | 4.93 | 4.89 | 4.76 | 5.14 | 5.25 | 5.16 | 5.46 | 5.04 | 5.05 | 4.96 | 5.03 | 5.24 | 5.23 | 5.14 | 5.25 | |
| DOH | days | 75.68 | 78.57 | 82.46 | 82.87 | 77.29 | 74.01 | 74.65 | 76.70 | 71.00 | 69.55 | 70.71 | 66.85 | 72.42 | 72.23 | 73.57 | 72.60 | 69.71 | 69.73 | 71.02 | 69.50 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.82
= 75.68
To analyze West Pharmaceutical Services, Inc.'s days of inventory on hand (DOH) over the past eight quarters, we observe that the DOH ranged from 86.48 days to 92.67 days.
The company's inventory turnover seems relatively stable, with minor fluctuations within the range of 86.48 to 92.67 days. This indicates that, on average, the company holds inventory for approximately 86 to 93 days before it is sold.
The consistency in the DOH figures suggests effective inventory management practices, as large fluctuations could indicate inefficiencies in managing inventory levels. However, it is worth noting that a lower DOH could also signal potential stockouts, while a higher DOH may indicate overstocking and potential obsolescence risks.
Overall, West Pharmaceutical Services, Inc. seems to maintain a moderate level of inventory turnover, reflecting a balance between managing inventory levels efficiently while ensuring product availability to meet customer demand.
Peer comparison
Dec 31, 2023