GE HealthCare Technologies Inc. (GEHC)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | ||
|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.20 | 2.06 | 2.14 | 2.17 | 2.20 | 2.87 | |
| DOH | days | 165.71 | 177.45 | 170.45 | 168.17 | 165.72 | 126.98 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.20
= 165.71
The days of inventory on hand (DOH) for GE HealthCare Technologies Inc. have shown a fluctuating trend over the analyzed period. From September 30, 2023, where DOH stood at 126.98 days, there was a steady increase in subsequent periods, reaching a peak of 177.45 days on September 30, 2024. However, there was a slight decline in DOH by the end of the year, with a figure of 165.71 days on December 31, 2024.
This indicates that GE HealthCare may be holding its inventory for a longer period before selling it, which could tie up capital and increase carrying costs. A high DOH may suggest inefficiencies in inventory management or pricing strategies. GE HealthCare may need to review its inventory management practices to optimize working capital and improve liquidity.
Peer comparison
Dec 31, 2024