GE Aerospace (GE)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		0.52	1.24	1.00	0.78	4.81
DOH	days	695.32	293.82	365.42	468.88	75.93

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.52
= 695.32

The days of inventory on hand (DOH) for GE Aerospace have exhibited significant fluctuations over the five-year period from December 31, 2020, to December 31, 2024.

- As of December 31, 2020, the DOH stood at 75.93 days, indicating that, on average, GE Aerospace held enough inventory to cover approximately 75.93 days of sales.
- By December 31, 2021, the DOH had increased sharply to 468.88 days, suggesting a substantial buildup of inventory relative to sales volume, potentially signaling inefficiencies in inventory management.
- The following year, by December 31, 2022, the DOH decreased to 365.42 days, although it remained at elevated levels, pointing to ongoing challenges in optimizing inventory levels.
- In the subsequent years, there was further improvement in inventory management, as seen in the DOH declining to 293.82 days by December 31, 2023, and further dropping to 695.32 days by December 31, 2024.
- The significant fluctuations in the DOH over the period indicate the need for GE Aerospace to implement more effective inventory management strategies to ensure optimal balance between stocking inventory levels and meeting customer demands efficiently.

Overall, the trend in the DOH for GE Aerospace highlights the importance of closely monitoring inventory levels and implementing proactive measures to enhance operational efficiency and cost-effectiveness in inventory management.