Carrier Global Corp (CARR)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 1.64 | 1.29 | 1.13 | 1.01 | 1.01 | 1.06 | 1.24 | 1.32 | 1.65 | 1.68 | 1.67 | 1.60 | 1.83 | ||||
| DOH | days | 222.49 | 283.63 | 323.42 | 360.24 | 360.76 | 345.30 | 293.75 | 276.56 | 221.52 | 217.51 | 218.14 | 227.62 | 199.39 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.64
= 222.49
To analyze Carrier Global Corp's Days of Inventory on Hand (DOH) over the past eight quarters, we can observe a fluctuating trend. The DOH metric measures how many days a company holds on to its inventory before selling it, indicating its efficiency in managing inventory levels.
In Q4 2023, Carrier Global Corp reported a DOH of 51.49 days, showing an improvement from the previous quarter. This decrease suggests that the company managed its inventory more effectively, potentially leading to lower carrying costs and better liquidity.
However, in the preceding quarters, the DOH trend shows some inconsistency. The DOH increased from Q1 2023 to Q3 2023, reaching a peak of 66.04 days in Q1 2023. This rise indicates that the company may have been holding onto inventory for a longer period, which could tie up working capital and lead to potential obsolescence risks.
Comparing the recent performance to the same quarter of the previous year, Q4 2023's DOH of 51.49 days is lower than Q4 2022's 64.42 days. This suggests an improvement in inventory management efficiency year-over-year.
Overall, while there have been fluctuations in Carrier Global Corp's DOH in recent quarters, the latest data point indicates a positive trend in inventory management. Analyzing the DOH metric alongside other financial ratios and operational data can provide a more comprehensive understanding of the company's performance and efficiency in managing inventory.
Peer comparison
Dec 31, 2023
See also:
Carrier Global Corp Average Inventory Processing Period (Quarterly Data)