Zoetis Inc (ZTS)

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		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	2.71	2.60	2.66	2.72
DOH	days	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	134.80	140.21	137.02	134.19

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.94
= 188.53

The days of inventory on hand (DOH) for Zoetis Inc has shown some fluctuations over the past eight quarters. In Q4 2023, the company held inventory for an average of 365.43 days, which decreased compared to the previous quarter but remained relatively high. This decrease suggests that the company managed its inventory more efficiently in the most recent quarter.

Looking at the trend over the past year, there was a general increase in DOH from Q1 2022 to Q3 2023, with the highest DOH being 402.88 days in Q3 2023. However, in Q4 2023, the DOH decreased to 365.43 days, indicating a potential improvement in inventory management practices.

It is essential for Zoetis Inc to monitor its inventory levels closely to strike a balance between ensuring product availability for customers and avoiding excessive holding costs associated with carrying excess inventory. Further analysis of factors driving inventory levels, such as production efficiency, demand forecasting, and supply chain management, could provide insights into optimizing inventory turnover and improving overall operational efficiency.