Textron Inc (TXT)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 0.29 | 0.26 | 0.27 | 0.29 | 0.25 | 0.25 | 0.25 | 0.28 | 0.26 | 0.28 | 0.30 | 0.32 | -1.60 | -0.97 | -1.02 | -0.39 | 2.13 | 2.22 | 2.81 | 3.07 | |
| DOH | days | 1,239.30 | 1,391.23 | 1,330.02 | 1,237.96 | 1,465.22 | 1,484.57 | 1,437.35 | 1,298.35 | 1,383.52 | 1,307.22 | 1,215.45 | 1,137.30 | — | — | — | — | 171.17 | 164.23 | 129.89 | 118.73 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.29
= 1,239.30
The days of inventory on hand (DOH) for Textron Inc have shown significant fluctuations over the years, indicating potential issues in managing its inventory efficiently.
Starting at 118.73 days on December 31, 2019, the DOH increased steadily to 171.17 days by September 30, 2020, signifying a potential build-up of inventory. The sudden absence of data for the following quarters might indicate a lack of reporting or data availability during that period.
However, by December 31, 2021, the DOH spiked to an exceptionally high 1,137.30 days, suggesting a severe inefficiency in inventory management or potential disruptions in the supply chain. This trend continued into subsequent quarters, reaching as high as 1,484.57 days by June 30, 2023.
The unexpected fluctuations in DOH, as evidenced by the sharp rise and fall in inventory holding periods, raise concerns about Textron Inc's ability to effectively manage its inventory levels, which could lead to increased carrying costs, obsolescence, and potential cash flow issues.
Moreover, the significant variations in DOH over the years may imply inconsistencies in production planning, demand forecasting, or procurement processes within the company. Addressing these issues and seeking ways to optimize inventory turnover can be crucial for enhancing operational efficiency and financial performance in the long run.
Peer comparison
Dec 31, 2024