Zimmer Biomet Holdings Inc (ZBH)

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		2.46	2.65	2.67	2.69	2.79	2.90	3.03	3.12	3.16	2.65	2.63	2.53	2.85	2.59	2.59	2.77	2.62	2.38	2.38	2.36
DOH	days	148.20	137.97	136.57	135.55	130.61	126.06	120.56	116.95	115.63	137.59	139.03	144.37	128.08	140.78	140.95	131.57	139.27	153.42	153.47	154.39

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.46
= 148.20

The days of inventory on hand (DOH) of Zimmer Biomet Holdings Inc have shown a gradual increase over the quarters, indicating a longer period for which inventory is held before being sold. In Q4 2023, the DOH stood at 417.79 days, the highest in the dataset, compared to 334.77 days in Q1 2022, the lowest recorded value. This trend suggests that Zimmer Biomet is taking longer to convert its inventory into sales, which could potentially tie up capital and increase carrying costs. Management may need to focus on improving inventory management practices to optimize working capital and efficiency in the supply chain.