GE HealthCare Technologies Inc. (GEHC)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.20 | 2.87 | ||||
| DOH | days | 165.72 | 126.98 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.20
= 165.72
The days of inventory on hand (DOH) for GE HealthCare Technologies Inc. as of December 31, 2023, was 165.72 days. This indicates that, on average, the company held its inventory for approximately 165.72 days before selling it.
Compared to the previous quarter, where the DOH was 126.98 days as of September 30, 2023, there has been a notable increase in the amount of time it takes for the company to convert its inventory into sales. This may suggest potential inefficiencies in inventory management or a buildup of excess inventory that could lead to higher holding costs or potential obsolescence risks.
It is important for the company to closely monitor and manage its inventory levels to ensure optimal operations and profitability. A high DOH ratio can tie up capital, increase storage costs, and indicate potential issues with sales and demand forecasting. Further analysis and actions may be necessary to address any underlying issues affecting inventory turnover and management efficiency.
Peer comparison
Dec 31, 2023