L3Harris Technologies Inc (LHX)

Days of inventory on hand (DOH)

		Sep 30, 2024	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
Inventory turnover		14.44	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
DOH	days	25.27	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

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 14.44
= 25.27

The days of inventory on hand (DOH) for L3Harris Technologies Inc has shown fluctuations over the periods under review. The company's DOH has ranged from a low of 10.56 days to a high of 65.49 days, indicating varying levels of efficiency in managing its inventory levels.

In recent quarters, the trend has been towards lower DOH figures, suggesting improvements in inventory management. This is particularly notable in the most recent financial period, where the DOH decreased to 25.27 days from 26.34 days in the previous quarter.

Overall, a lower DOH is generally preferred as it indicates that the company is efficiently managing its inventory and converting it into sales in a timely manner. Conversely, a higher DOH could signal excess or slow-moving inventory, which may tie up capital and lead to potential obsolescence risks.

It would be pertinent for stakeholders to monitor the trend in DOH over future periods to assess the company's effectiveness in managing its inventory levels and optimizing working capital efficiency.