Goodyear Tire & Rubber Co (GT)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.22 | 4.01 | 3.85 | 4.20 | 4.48 | 4.29 | 3.93 | 3.77 | 3.71 | 3.38 | 3.65 | 3.70 | 3.81 | 3.64 | 3.44 | 4.47 | 4.80 | 4.85 | 4.30 | 3.86 | |
| DOH | days | 86.52 | 91.02 | 94.85 | 86.97 | 81.52 | 85.12 | 92.90 | 96.73 | 98.41 | 108.11 | 100.12 | 98.58 | 95.81 | 100.40 | 106.12 | 81.72 | 76.02 | 75.19 | 84.90 | 94.50 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.22
= 86.52
The Days of Inventory on Hand (DOH) ratio for Goodyear Tire & Rubber Co has displayed some fluctuations over the period from March 31, 2020, to December 31, 2024. The company started with a relatively high DOH of 94.50 days in March 2020, indicating that it held inventory for approximately 94.50 days on average before selling it.
Subsequently, the DOH ratio improved, reaching its lowest point of 75.19 days by September 30, 2020, suggesting more efficient management of inventory during that period. However, the ratio started to increase again and peaked at 108.11 days on September 30, 2022, indicating a possible buildup of excess inventory.
Throughout the latter part of the period, the DOH ratio fluctuated within a range, with values hovering between 81.52 days to 100.12 days. By December 31, 2024, the DOH ratio stood at 86.52 days.
The fluctuations in the DOH ratio suggest changes in the company's inventory management practices and the effectiveness of its supply chain operations. Analyzing these trends can provide insights into the company's inventory holding costs, production efficiency, demand forecasting accuracy, and overall operational effectiveness. It is important for stakeholders to monitor the DOH ratio closely to ensure optimal inventory management and operational performance.