L3Harris Technologies Inc (LHX)

Days of inventory on hand (DOH)

		Jun 30, 2024	Mar 31, 2024	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	Sep 30, 2019	Jun 30, 2019
Inventory turnover		13.86	13.06	12.51	10.82	11.41	11.08	12.87	12.56	12.82	15.11	17.18	28.83	34.55	33.47	31.54	19.07	16.65	11.06	5.57	13.76
DOH	days	26.34	27.94	29.18	33.73	32.00	32.95	28.37	29.06	28.47	24.15	21.24	12.66	10.56	10.90	11.57	19.14	21.93	33.00	65.49	26.52

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 13.86
= 26.34

The Days of Inventory on Hand (DOH) ratio for L3Harris Technologies Inc has fluctuated over the past few quarters. The company had a DOH of 26.34 days as of June 30, 2024, which indicates that, on average, it takes around 26.34 days for the company to sell its inventory.

Looking at the trend over the previous quarters, we observe that the DOH has been relatively stable, with some fluctuations within a range of 24 to 33 days. This suggests that the company has been managing its inventory levels efficiently, neither holding excessive inventory nor risking stockouts.

It is important to note the significant decrease in DOH from 65.49 days as of September 30, 2019, to the current level of 26.34 days as of June 30, 2024. This substantial reduction may indicate improvements in inventory management practices, such as better forecasting, inventory controls, and supply chain efficiency.

Overall, a decreasing trend in DOH signifies an improvement in inventory turnover, which can positively impact working capital management and profitability. However, it is essential for the company to monitor and optimize its inventory levels continuously to ensure efficient operations and minimize carrying costs.