Zoetis Inc (ZTS)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		1.95	2.01	2.39	2.51	2.80
DOH	days	187.55	181.53	152.98	145.57	130.29

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.95
= 187.55

Zoetis Inc's days of inventory on hand (DOH) have been showing a general increasing trend over the past five years, indicating that the company has been holding onto its inventory for a longer period before selling it.

The DOH increased significantly from 258.36 days in 2019 to 365.43 days in 2023, reflecting a potential inefficiency in managing inventory levels. This suggests that Zoetis Inc may be facing challenges in controlling its inventory turnover and may have excess or slow-moving inventory in its supply chain.

The rising DOH can tie up working capital and increase carrying costs, impacting the company's profitability and liquidity. It may also signal potential issues with demand forecasting, production inefficiencies, or supply chain disruptions.

Zoetis Inc should closely monitor its inventory turnover ratios and work towards optimizing its inventory management processes to improve operational efficiency and maintain a healthy balance between inventory levels and sales demand.