Johnson Controls International PLC (JCI)

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 6.16 6.74 8.08 8.15 8.50 9.07 9.15 9.17 9.13 10.52 10.39 10.68 11.21 12.35 11.38 11.40 11.94 12.75 11.87 12.04
DOH days 59.29 54.17 45.18 44.79 42.93 40.24 39.90 39.80 39.98 34.69 35.14 34.18 32.56 29.55 32.08 32.02 30.57 28.62 30.75 30.30

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.16
= 59.29

To analyze Johnson Controls International plc's days of inventory on hand (DOH) over the period from March 31, 2022, to December 31, 2023, we observe fluctuations in the DOH ratio. The DOH indicates the average number of days it takes for the company to sell its inventory.

We note an increase in DOH from the third quarter of 2022 to the second quarter of 2023, followed by a slight decrease in the third quarter of 2023. This indicates that the company took longer to sell its inventory during this period. However, the ratio improved in the most recent period, suggesting a more efficient inventory management.

The increase in DOH may signal overstocking or slowing sales, which could tie up capital and increase carrying costs. Conversely, a decrease in DOH may signal efficient inventory turnover, freeing up capital and reducing carrying costs.

Overall, monitoring DOH can provide insights into the company's inventory management efficiency, and further analysis, in conjunction with other financial and operational metrics, would help in properly assessing the company's performance and the effectiveness of its inventory management.

Peer comparison

Dec 31, 2023

Company name
Symbol
DOH
Johnson Controls International PLC
JCI
59.29
NV5 Global Inc
NVEE
—

See also:

Johnson Controls International PLC Average Inventory Processing Period (Quarterly Data)