Honeywell International Inc (HON)

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		3.69	3.64	3.60	3.57	3.65	3.82	3.94	4.09	4.30	4.30	4.20	4.27	4.55	4.72	4.88	4.85	4.94	4.79	4.88	5.23
DOH	days	98.96	100.25	101.39	102.23	100.10	95.56	92.55	89.15	84.84	84.95	86.97	85.50	80.16	77.36	74.72	75.26	73.91	76.25	74.86	69.73

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.69
= 98.96

Honeywell International Inc's Days of Inventory on Hand (DOH) has been gradually increasing over the analyzed period from March 31, 2020 to December 31, 2024.

The company's inventory management efficiency deteriorated as the DOH increased from 69.73 days in March 2020 to 98.96 days in December 2024. This indicates that it takes Honeywell almost 99 days to sell its inventory, on average.

The increasing trend in DOH suggests that Honeywell might be facing challenges in managing its inventory levels effectively. An increasing DOH can tie up working capital in excess inventory and may indicate potential inefficiencies in production, delays in sales, or challenges in demand forecasting.

Honeywell should closely monitor and potentially optimize its inventory management practices to reduce DOH, which would help in improving cash flow, reducing carrying costs, and ultimately enhancing overall operational efficiency.