GE Aerospace (GE)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 0.62 | 1.00 | 0.78 | 4.81 | 5.07 | |
| DOH | days | 586.21 | 365.42 | 468.88 | 75.93 | 72.00 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.62
= 586.21
General Electric Co.'s days of inventory on hand (DOH) has shown an increasing trend over the past five years. The DOH increased from 73.51 days in 2019 to 119.72 days in 2023. This indicates that, on average, General Electric Co. held inventory for a longer period before selling it.
The rise in DOH could suggest inefficiencies in inventory management or potential challenges in sales and operations planning. A high DOH may tie up working capital in inventory and indicate potential risks related to obsolescence or overstocking.
It would be advisable for General Electric Co. to closely monitor and optimize its inventory levels to improve efficiency and maintain a competitive position in the market. Additionally, the company should consider implementing strategies to streamline its supply chain and enhance forecasting accuracy to better align inventory levels with customer demand.
Peer comparison
Dec 31, 2023