General Dynamics Corporation (GD)

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 0.36 0.33 0.35 0.35 0.38 0.40 0.42 0.47 0.52 0.52 0.53 0.58 0.59 0.55 0.53 0.54 0.54 1.85 2.98 4.06
DOH days 1,027.58 1,091.56 1,052.51 1,053.26 951.66 923.03 859.05 784.90 700.31 700.77 692.02 633.41 621.72 665.36 690.61 671.01 677.96 197.54 122.34 89.94

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.36
= 1,027.58

General Dynamics Corporation's days of inventory on hand (DOH) have shown significant fluctuations over the period under review. The DOH increased steadily from 89.94 days as of March 31, 2020, to a peak of 1,053.26 days as of March 31, 2024. This upward trend indicates that the company is holding inventory for a longer period before it is sold or used in production.

Such a prolonged DOH may suggest potential issues with inventory management efficiency, such as overstocking, slow-moving inventory, or supply chain disruptions. It could also indicate a mismatch between production levels and demand in the market.

It is important for General Dynamics Corporation to closely monitor and optimize its inventory levels to ensure that excessive inventory does not lead to increased holding costs, obsolescence risks, or liquidity challenges. Regular review and adjustment of inventory policies and supply chain processes may help in improving the management of inventory levels and positively impact the company's overall financial performance.

Peer comparison

Dec 31, 2024

Company name
Symbol
DOH
General Dynamics Corporation
GD
1,027.58
Huntington Ingalls Industries Inc
HII
73.92

See also:

General Dynamics Corporation Average Inventory Processing Period (Quarterly Data)