Otis Worldwide Corp (OTIS)
Days of inventory on hand (DOH)
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.58 | 3.20 | 3.32 | 3.45 | 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 | 102.01 | 114.06 | 109.86 | 105.94 | 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, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.58
= 102.01
Based on the provided data, Otis Worldwide Corp's days of inventory on hand (DOH) fluctuated over the period from December 31, 2020, to December 31, 2024.
The DOH started at 65.13 days on December 31, 2020, and gradually increased to reach its peak at 124.45 days on March 31, 2023. This significant increase indicates that Otis Worldwide Corp may have been facing challenges in managing its inventory efficiently during that period.
After reaching the peak, the DOH gradually started to decrease, reaching 102.01 days by December 31, 2024. This gradual decrease suggests that Otis Worldwide Corp may have implemented strategies to improve inventory management and reduce the number of days inventory is held on hand.
Overall, fluctuations in the DOH can provide insights into the company's inventory management efficiency. It is important for Otis Worldwide Corp to strike a balance between having enough inventory to meet demand and not holding excess inventory that could tie up capital and lead to holding costs. By monitoring and analyzing the DOH over time, Otis Worldwide Corp can make informed decisions to optimize its inventory levels and improve its overall financial performance.
Peer comparison
Dec 31, 2024