Johnson Controls International PLC (JCI)
Days of inventory on hand (DOH)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 12.26 | 13.72 | 9.23 | 10.52 | 12.59 | |
| DOH | days | 29.77 | 26.60 | 39.54 | 34.69 | 28.99 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 12.26
= 29.77
The days of inventory on hand (DOH) for Johnson Controls International PLC has been fluctuating over the past five years, ranging from a low of 26.60 days in 2023 to a high of 39.54 days in 2022. In 2024, the DOH is at 29.77 days, showing a slight increase from the previous year.
A lower DOH typically indicates that the company is more efficient in managing its inventory and able to turn over its inventory faster, which is generally viewed positively as it reduces carrying costs and the risk of inventory obsolescence. On the other hand, a higher DOH suggests that the company may be holding onto excess inventory or facing challenges in selling its products, which could tie up capital and increase storage costs.
It's important to consider industry norms and specific business dynamics when evaluating the significance of the DOH for Johnson Controls International PLC. Further analysis and comparison with competitors or industry benchmarks would provide additional insights into the company's inventory management effectiveness.
Peer comparison
Sep 30, 2024
See also:
Johnson Controls International PLC Average Inventory Processing Period