Honeywell International Inc (HON)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 23,836,000 | 22,995,000 | 23,825,000 | 23,394,000 | 22,169,000 |
| Inventory | US$ in thousands | 197,000 | 6,178,000 | 5,538,000 | 5,138,000 | 4,489,000 |
| Inventory turnover | 120.99 | 3.72 | 4.30 | 4.55 | 4.94 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $23,836,000K ÷ $197,000K
= 120.99
Honeywell International Inc's inventory turnover ratio has shown a general decline over the period from December 31, 2020, to December 31, 2024. The ratio decreased from 4.94 in 2020 to 3.72 in 2023, reflecting a longer average time it takes for the company to sell its inventory.
However, there was a significant spike in inventory turnover to 120.99 in 2024, which may be attributed to various factors such as inventory management improvements, changes in sales strategies, or possibly an anomaly in the data. This spike indicates a sharp increase in the frequency at which Honeywell is selling and replenishing its inventory during that year.
Overall, while the fluctuation in inventory turnover ratio raises some questions about the company's inventory management efficiency, further analysis is required to understand the underlying reasons for these changes and their potential impact on Honeywell's operations and financial performance.
Peer comparison
Dec 31, 2024