GE Aerospace (GE)

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		1.26	2.05	2.18	1.26	2.65	1.35	1.42	1.51	1.80	1.46	2.21	3.16	3.99	3.85	3.96	4.28	4.66	5.48	5.55	5.93
DOH	days	289.06	177.68	167.55	289.59	137.60	269.57	256.36	242.25	203.12	249.74	165.48	115.59	91.43	94.73	92.27	85.30	78.27	66.58	65.77	61.56

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.26
= 289.06

The days of inventory on hand (DOH) for GE Aerospace have shown significant fluctuations over the past few years based on the provided data. The DOH metric reflects the number of days a company holds inventory before it is sold.

From March 31, 2020, to March 31, 2022, the DOH increased steadily, indicating a lengthening of the company's inventory turnover cycle. This could suggest issues with inventory management efficiency or a potential mismatch between production and demand.

The most notable increase occurred from June 30, 2021, to September 30, 2022, where the DOH more than doubled, reaching its peak at 249.74 days. This prolonged period indicates that a substantial amount of inventory was tied up, potentially leading to increased holding costs and liquidity challenges.

Subsequently, there was a sharp decline in DOH by December 31, 2022, and March 31, 2023, suggesting efforts to reduce excess inventory levels or improve inventory management practices. However, this downward trend was short-lived as the DOH increased again by June 30, 2023, reaching 256.36 days.

By the end of December 31, 2024, the DOH significantly decreased to 289.06 days, but it remained above the levels observed in the earlier years of analysis. This indicates ongoing fluctuations in inventory management within GE Aerospace, highlighting the importance of closely monitoring and optimizing inventory levels to achieve operational efficiency and cost-effectiveness.