Otis Worldwide Corp (OTIS)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.31 | 3.13 | 2.98 | 2.93 | 3.08 | 3.26 | 3.42 | 3.31 | 3.38 | 3.45 | 3.24 | 3.13 | 5.60 | ||||
| DOH | days | 110.42 | 116.50 | 122.50 | 124.45 | 118.65 | 111.95 | 106.85 | 110.28 | 108.01 | 105.78 | 112.68 | 116.68 | 65.13 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.31
= 110.42
The days of inventory on hand (DOH) for Otis Worldwide Corp has shown a slight fluctuation over the past eight quarters. It ranged from a low of 21.75 days in Q2 2022 to a high of 24.14 days in Q1 2023. The company has managed to keep its inventory levels relatively stable, with the average DOH over this period being around 22 days.
A lower DOH value indicates that the company is able to quickly turn over its inventory, which is generally considered favorable as it reduces the risk of obsolete or excess inventory. Conversely, a higher DOH value may suggest inefficiencies in inventory management or a slower rate of inventory turnover.
Overall, Otis Worldwide Corp's DOH values within a narrow range over the past eight quarters imply that the company has been effectively managing its inventory levels. This stability can be indicative of efficient inventory control practices, enabling the company to optimize its working capital and potentially improve its overall operational performance.
Peer comparison
Dec 31, 2023