Honeywell International Inc (HON)
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 | 4.67 | 4.80 | 4.94 | 5.12 | 5.40 | 5.40 | 5.26 | 5.32 | 5.63 | 5.82 | 6.04 | 6.03 | 6.14 | 6.01 | 6.13 | 6.58 | 6.93 | 6.76 | 7.17 | 7.64 | |
| DOH | days | 78.10 | 75.98 | 73.91 | 71.31 | 67.62 | 67.56 | 69.37 | 68.61 | 64.86 | 62.69 | 60.47 | 60.58 | 59.47 | 60.77 | 59.57 | 55.44 | 52.68 | 53.97 | 50.90 | 47.79 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.67
= 78.10
To analyze Honeywell International Inc's days of inventory on hand (DOH) for the past eight quarters, we observe a gradual increase in the DOH metric.
In Q4 2022, the company had 84.84 days of inventory on hand, which increased steadily to 98.06 days in Q4 2023. This indicates that, on average, it took the company approximately 98.06 days to sell its inventory at the end of the most recent quarter.
The increasing trend in DOH suggests that Honeywell may be experiencing slower sales or production inefficiencies, leading to higher inventory levels relative to sales. This could potentially tie up working capital and increase holding costs.
It is important for the company to closely monitor and manage its inventory levels to optimize operational efficiency and profitability. By implementing inventory management strategies such as demand forecasting, lean inventory practices, or more efficient production processes, Honeywell can aim to reduce its DOH metric and improve overall financial performance.
Peer comparison
Dec 31, 2023
See also:
Honeywell International Inc Average Inventory Processing Period (Quarterly Data)