Otis Worldwide Corp (OTIS)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.58 | 3.31 | 3.08 | 3.38 | 3.29 | |
| DOH | days | 101.96 | 110.42 | 118.65 | 108.01 | 110.90 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.58
= 101.96
Based on the data provided, Otis Worldwide Corp's days of inventory on hand (DOH) has shown some fluctuations over the past five years.
- As of December 31, 2020, the company had 110.90 days of inventory on hand, indicating that it held enough inventory to cover around three months of sales at that time.
- By December 31, 2021, the DOH decreased slightly to 108.01 days, suggesting a modest improvement in inventory management efficiency.
- However, by December 31, 2022, the DOH increased to 118.65 days, implying that the company may have been holding onto excess inventory relative to sales, which could tie up working capital.
- The trend reversed by December 31, 2023, with the DOH declining to 110.42 days, potentially indicating better inventory control or a more efficient sales process.
- The most recent data as of December 31, 2024, shows a further decrease in DOH to 101.96 days, possibly signaling ongoing efforts to optimize inventory levels and improve operational efficiency.
Overall, Otis Worldwide Corp's DOH has fluctuated over the years, suggesting varying levels of inventory management effectiveness. Further analysis and comparison with industry benchmarks may provide additional insights into the company's inventory management performance.
Peer comparison
Dec 31, 2024