Zoetis Inc (ZTS)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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		2.27	2.16	2.09	1.90	1.94	1.77	1.78	1.87	2.01	2.05	2.13	2.24	2.36	2.40	2.43	2.46	2.50	2.44	2.45	2.59
DOH	days	160.47	169.00	174.43	191.61	188.53	205.96	205.39	195.71	181.88	178.21	171.20	162.69	154.47	152.22	150.17	148.55	145.86	149.46	149.20	140.99

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.27
= 160.47

The days of inventory on hand (DOH) for Zoetis Inc have shown fluctuations over the period from March 31, 2020, to December 31, 2024. The DOH metric indicates the average number of days it takes for a company to sell its inventory. A higher DOH value typically suggests slower inventory turnover and may indicate overstocking or potential obsolescence.

Initially, from March 2020 to December 2021, Zoetis Inc experienced a gradual increase in DOH, reaching a peak of 181.88 days by December 31, 2022. This increase could be a sign of potential inventory management challenges or changing market demand dynamics impacting sales.

However, from March 2023 to December 2024, there was a noticeable decline in DOH, dropping to 160.47 days by the end of December 2024. This downward trend may imply improvements in inventory control and efficiency in managing inventory levels. A lower DOH could indicate enhanced operational performance and better alignment of production with sales demand.

Overall, an analyst may further investigate the reasons behind the fluctuations in Zoetis Inc's DOH to assess the effectiveness of the company's inventory management strategies, production planning, and potential impact on profitability and cash flow.