Textron Inc (TXT)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 0.25 | 0.29 | 0.28 | 0.32 | 0.30 | |
| DOH | days | 1,474.12 | 1,237.96 | 1,298.35 | 1,137.30 | 1,215.40 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.25
= 1,474.12
The days of inventory on hand (DOH) for Textron Inc have displayed fluctuations over the years, ranging from a low of 1,137.30 days on December 31, 2021, to a high of 1,474.12 days on December 31, 2024. The increasing trend in DOH from 2021 to 2024 indicates that Textron Inc may be holding inventory for a longer period, which can tie up working capital and potentially signal inefficiencies in inventory management or demand forecasting.
Textron Inc may want to further assess its inventory management policies to find ways to optimize inventory levels and improve its operational efficiency. It is important for the company to strike a balance between having enough inventory to meet customer demand and not holding excessive amounts that could lead to increased storage costs and tie up cash flow.
Peer comparison
Dec 31, 2024