Resideo Technologies Inc (REZI)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.93 | 4.83 | 4.72 | 5.79 | 5.59 | |
| DOH | days | 92.90 | 75.55 | 77.30 | 63.03 | 65.27 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.93
= 92.90
The days of inventory on hand (DOH) for Resideo Technologies Inc have shown some fluctuations over the years. The trend indicates that the company was able to reduce its inventory holding period from 65.27 days in December 2020 to 63.03 days in December 2021. However, in the following years, there was an increase in DOH, reaching 77.30 days by December 2022 and further rising to 75.55 days by December 2023. The most significant increase was observed in December 2024, with the DOH jumping to 92.90 days.
A higher DOH figure suggests that Resideo Technologies Inc is taking longer to sell its inventory, which may result in increased holding costs, obsolescence risks, or potential write-downs. It is essential for the company to effectively manage its inventory levels to optimize its working capital and maintain profitability. Understanding the reasons behind the fluctuation in DOH and implementing appropriate inventory management strategies will be crucial for Resideo Technologies Inc to enhance operational efficiency and improve financial performance.