Honeywell International Inc (HON)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 28,874,000 | 29,892,000 | 29,075,000 | 27,960,000 | 30,835,000 |
| Inventory | US$ in thousands | 6,178,000 | 5,538,000 | 5,138,000 | 4,489,000 | 4,421,000 |
| Inventory turnover | 4.67 | 5.40 | 5.66 | 6.23 | 6.97 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $28,874,000K ÷ $6,178,000K
= 4.67
The inventory turnover ratio for Honeywell International Inc has shown a declining trend over the past five years, decreasing from 5.51 in 2019 to 3.72 in 2023. This indicates that the company is selling its inventory less frequently in recent years. A lower inventory turnover ratio may suggest inefficiencies in managing inventory levels or challenges in selling products. It is important for the company to investigate the underlying reasons for the declining ratio and take steps to improve inventory management processes to optimize working capital utilization and enhance operational efficiency.
Peer comparison
Dec 31, 2023