Resideo Technologies Inc (REZI)
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 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.95 | 3.91 | 3.80 | 4.87 | 4.84 | 4.70 | 4.61 | 4.63 | 4.73 | 4.74 | 4.56 | 4.67 | 5.79 | 6.06 | 6.17 | 5.75 | 5.59 | 5.97 | 5.92 | 5.65 | |
| DOH | days | 92.48 | 93.40 | 96.13 | 74.99 | 75.35 | 77.59 | 79.19 | 78.83 | 77.23 | 76.99 | 80.02 | 78.15 | 63.03 | 60.20 | 59.20 | 63.51 | 65.27 | 61.10 | 61.62 | 64.62 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.95
= 92.48
Days of inventory on hand (DOH) measures how many days a company holds inventory before it is sold. A lower DOH indicates efficient inventory management, while a higher DOH suggests sluggish sales or overstocking.
In the case of Resideo Technologies Inc, the trend in DOH over the past few years is as follows:
- The DOH decreased from 64.62 days on March 31, 2020, to 59.20 days on June 30, 2021, indicating an improvement in inventory management efficiency.
- However, the DOH increased to 80.02 days on June 30, 2022, and remained relatively high around 77-78 days in subsequent quarters until December 31, 2023.
- A significant spike was noted on June 30, 2024, with the DOH reaching 96.13 days, suggesting a potential issue with inventory management or demand forecasting.
Overall, the fluctuation in Resideo Technologies Inc's DOH indicates varying levels of effectiveness in managing its inventory. Further investigation into the reasons behind the significant increase in DOH in the most recent quarter is recommended to address any underlying issues and improve operational efficiency.