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.