General Dynamics Corporation (GD)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 0.38 | 0.52 | 0.59 | 0.53 | 5.63 | |
| DOH | days | 951.66 | 700.31 | 621.72 | 683.04 | 64.78 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.38
= 951.66
The days of inventory on hand (DOH) for General Dynamics Corp. have shown fluctuations over the past five years. The trend indicates that the company held inventory for longer periods in 2023 compared to previous years, with 87.95 days of inventory on hand at the end of the year. This increase in DOH may suggest potential challenges in managing or selling inventory efficiently.
In 2022, the DOH decreased to 70.38 days, indicating an improvement in inventory turnover compared to 2021 when the DOH was 60.79 days. However, in 2020 and 2019, the DOH was higher at 66.36 days and 71.28 days, respectively, reflecting potential inefficiencies in inventory management during those years.
Overall, General Dynamics Corp. should focus on optimizing its inventory management practices to ensure that inventory turnover is efficient, reducing the number of days inventory is held on hand. This could potentially lead to cost savings, improved cash flow, and better overall financial performance for the company.
Peer comparison
Dec 31, 2023
See also:
General Dynamics Corporation Average Inventory Processing Period