Textron Inc (TXT)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 0.29 | 0.28 | 0.32 | 0.30 | 3.07 | |
| DOH | days | 1,237.96 | 1,298.35 | 1,137.30 | 1,215.40 | 118.73 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.29
= 1,237.96
The days of inventory on hand (DOH) for Textron Inc have fluctuated over the past five years, exhibiting a consistent pattern of variability. The company experienced a substantial increase in its DOH from 2019 to 2020, with a significant rise to 1,215.40 days. However, this spike was followed by a sharp decrease in 2021, dropping to 1,137.30 days.
In the most recent year, Textron Inc saw a notable increase in its DOH, reaching 1,298.35 days in 2022, before a slight decrease to 1,237.96 days in 2023. This suggests that the company has struggled with managing its inventory efficiently over the years, leading to extended holding periods.
The comparatively high DOH figures indicate that Textron Inc may be facing challenges in optimizing its inventory turnover and may potentially be holding excess inventory levels. This could result in increased storage costs, risk of obsolescence, and reduced liquidity.
Overall, a thorough review and adjustment of inventory management strategies may be warranted for Textron Inc to improve its operational efficiency and financial performance in the future.
Peer comparison
Dec 31, 2023