L3Harris Technologies Inc (LHX)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		11.88	9.72	9.40	12.67	13.24
DOH	days	30.72	37.56	38.83	28.82	27.56

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.88
= 30.72

The days of inventory on hand (DOH) for L3Harris Technologies Inc have shown fluctuations over the years:

1. As of December 31, 2020, the company had 27.56 days of inventory on hand, indicating that on average it took approximately 27.56 days for the company to sell its inventory.

2. By December 31, 2021, the DOH increased to 28.82 days, suggesting a slight delay in converting inventory into sales compared to the previous year.

3. The trend continued with a significant increase in DOH to 38.83 days as of December 31, 2022. This suggests either an increase in inventory levels or a decrease in sales, which may require attention to optimize operations.

4. The DOH decreased slightly to 37.56 days by December 31, 2023, but remained relatively high compared to previous years, indicating a continued challenge in managing inventory efficiently.

5. As of December 31, 2024, the DOH decreased to 30.72 days, showing some improvement in inventory turnover compared to the previous year. However, it still remains higher than the levels seen in 2020 and 2021.

Overall, the fluctuation in days of inventory on hand for L3Harris Technologies Inc over the years highlights the need for the company to focus on inventory management strategies to ensure optimal levels that support sales and profitability.