L3Harris Technologies Inc (LHX)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Jun 30, 2019
Inventory turnover		12.51	12.62	17.02	18.17	12.97
DOH	days	29.18	28.91	21.45	20.09	28.15

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 12.51
= 29.18

The days of inventory on hand (DOH) for L3Harris Technologies Inc have shown an increasing trend from December 31, 2020, to December 31, 2023, indicating a slower turnover of inventory. This suggests that the company might be carrying more inventory relative to its sales volume, which could tie up working capital and potentially increase holding costs.

The DOH was at its lowest level on December 31, 2020, which indicates efficient inventory management during that period. However, the DOH has been steadily increasing since then, reaching its highest point on December 31, 2023. This suggests a potential need for the company to revisit its inventory management strategies to optimize inventory levels and improve cash flow efficiency.

Overall, the increasing trend in DOH for L3Harris Technologies Inc over the years highlights the importance of monitoring inventory levels closely and implementing strategies to maintain an optimal balance between inventory holdings and sales.