General Dynamics Corporation (GD)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 0.36 | 0.38 | 0.52 | 0.59 | 0.53 | |
| DOH | days | 1,027.58 | 951.66 | 700.31 | 621.72 | 683.04 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.36
= 1,027.58
General Dynamics Corporation's Days of Inventory on Hand (DOH) indicates the average number of days it takes for the company to sell its inventory. The trend in General Dynamics' DOH over the past five years shows some fluctuations.
In 2020, the company had 683.04 days of inventory on hand; this decreased slightly to 621.72 days in 2021. However, there was a significant increase in 2022 to 700.31 days, followed by a notable rise in 2023 to 951.66 days. By the end of 2024, the DOH further increased to 1,027.58 days.
The rising trend in DOH may indicate inefficiencies in inventory management, leading to excess inventory levels or slow inventory turnover. It could also suggest potential challenges in forecasting demand accurately or issues with the supply chain that are impacting inventory levels.
Overall, General Dynamics Corporation's increasing DOH trend warrants a closer look at its inventory management practices to optimize working capital and improve operational efficiency.
Peer comparison
Dec 31, 2024
See also:
General Dynamics Corporation Average Inventory Processing Period