GE HealthCare Technologies Inc. (GEHC)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|
| Inventory turnover | 2.20 | 2.20 | 1.94 | |
| DOH | days | 165.82 | 165.76 | 188.31 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.20
= 165.82
Based on the provided data, the days of inventory on hand (DOH) for GE HealthCare Technologies Inc. decreased from 188.31 days as of December 31, 2022, to 165.76 days as of December 31, 2023, and remained relatively stable at 165.82 days as of December 31, 2024.
A lower DOH indicates that the company is managing its inventory more efficiently by selling products more quickly or carrying less inventory on hand. This can lead to cost savings and improved cash flow.
However, a stable DOH in 2024 compared to 2023 could suggest that the company has reached an optimal level of inventory management or that there may be bottlenecks in the supply chain affecting inventory turnover.
Overall, the trend in DOH for GE HealthCare Technologies Inc. shows a positive direction in inventory management, but further analysis of industry benchmarks and company-specific factors is necessary to fully evaluate the efficiency of its inventory management practices.
Peer comparison
Dec 31, 2024