Goodyear Tire & Rubber Co (GT)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.45 | 5.08 | 4.62 | 4.43 | 4.36 | 3.99 | 4.32 | 4.42 | 4.59 | 4.47 | 4.26 | 5.58 | 6.10 | 6.08 | 5.37 | 4.78 | 4.96 | 4.77 | 4.58 | 4.84 | |
| DOH | days | 66.99 | 71.87 | 79.03 | 82.48 | 83.73 | 91.52 | 84.43 | 82.49 | 79.44 | 81.59 | 85.60 | 65.46 | 59.86 | 60.05 | 68.00 | 76.38 | 73.59 | 76.58 | 79.69 | 75.34 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.45
= 66.99
The days of inventory on hand (DOH) for Goodyear Tire & Rubber Co. have shown a declining trend over the past two years. In Q4 2023, the company had 81.52 days of inventory on hand, compared to 85.12 days in Q3 2023, 92.90 days in Q2 2023, and 96.73 days in Q1 2023. This reduction in DOH over the quarters indicates an improvement in inventory management efficiency.
Moreover, when comparing Q4 2023 to the same period in the previous year (Q4 2022), Goodyear's inventory management has significantly improved, as the DOH has decreased from 98.41 days to 81.52 days. This suggests that the company is carrying less inventory on hand relative to its sales.
Overall, the decreasing trend in DOH for Goodyear Tire & Rubber Co. signals an improvement in inventory turnover and efficiency, which can lead to cost savings, better cash flow management, and potentially higher profitability. It indicates that the company is effectively managing its inventory levels to meet demand and minimize excess inventory holding costs.