Trane Technologies plc (TT)

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		1.46	1.69	1.39	1.25	1.35	1.88	1.69	1.54	1.68	8.02	8.43	8.17	9.28	9.76	9.46	9.55	11.51	7.63	7.23	7.01
DOH	days	249.89	216.60	261.95	291.27	270.11	193.87	216.44	237.63	217.42	45.53	43.32	44.69	39.33	37.41	38.57	38.22	31.71	47.83	50.48	52.09

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.46
= 249.89

Days of Inventory on Hand (DOH) is a measure that indicates how many days a company typically holds inventory before it is sold. A lower DOH value suggests that the company is efficient in managing its inventory levels, while a higher DOH value may indicate overstocking or slow-moving inventory.

For Trane Technologies plc, the DOH has ranged from 66.00 days to 76.50 days over the past eight quarters. The company's average DOH over this period is approximately 68.06 days.

The trend in Trane Technologies' DOH shows some fluctuations, with a slight increase in the most recent quarter. This trend may suggest challenges in managing inventory levels efficiently or changes in the company's sales patterns or production processes.

To gain a deeper understanding of the reasons behind these fluctuations, it would be beneficial to compare the DOH to industry benchmarks, analyze the company's inventory turnover ratio, and consider any external factors that may be influencing inventory levels.

Overall, while Trane Technologies plc's DOH has shown some variability, further analysis is needed to determine the impact of inventory management on the company's overall financial performance.

Trane Technologies plc (TT)

Days of inventory on hand (DOH)

See also: