Resideo Technologies Inc (REZI)
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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.64 | 5.53 | 5.41 | 5.43 | 5.81 | 5.81 | 5.60 | 5.75 | 7.12 | 7.49 | 7.70 | 6.94 | 6.44 | 6.81 | 6.75 | 6.87 | 7.25 | 6.17 | 6.06 | ||
| DOH | days | 64.73 | 66.00 | 67.42 | 67.22 | 62.79 | 62.78 | 65.16 | 63.48 | 51.27 | 48.74 | 47.39 | 52.58 | 56.63 | 53.59 | 54.07 | 53.10 | 50.35 | 59.16 | 60.25 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.64
= 64.73
Days of Inventory on Hand (DOH) is a key financial ratio that indicates the average number of days a company holds its inventory before selling it. A lower DOH value is generally preferred as it suggests efficient inventory management.
Analyzing the DOH trend of Resideo Technologies Inc over the past eight quarters, we observe a fluctuating pattern. In Q4 2023, the DOH decreased to 75.55 days from 77.69 days in Q3 2023. This reduction indicates that the company has been able to sell its inventory more quickly in the most recent quarter.
Comparing to the same quarter of the previous year, Resideo's inventory turnover has been relatively consistent, with minor fluctuations quarter over quarter. Despite some fluctuations, the company's DOH has remained within a relatively narrow range, indicating some consistency in managing inventory levels.
Overall, the trend in Resideo Technologies Inc's DOH suggests a moderate level of efficiency in managing its inventory levels. However, there may be opportunities for the company to further optimize its inventory turnover to enhance operational efficiency and potentially improve profitability.