Textron Inc (TXT)
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 | 0.88 | 0.79 | 0.80 | 0.83 | 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 | 2.67 | 2.68 | 2.90 | |
| DOH | days | 415.41 | 460.71 | 455.06 | 437.24 | 1,298.35 | 1,383.52 | 1,307.22 | 1,215.45 | 1,137.30 | — | — | — | — | 171.17 | 164.23 | 129.89 | 118.73 | 136.76 | 136.21 | 126.04 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.88
= 415.41
The days of inventory on hand (DOH) for Textron Inc have shown significant fluctuations over the past few quarters. The DOH metric measures how many days it takes for a company to sell its average inventory balance. A higher number of DOH indicates slower inventory turnover, while a lower number suggests faster turnover.
In the most recent quarter, ending December 31, 2023, Textron Inc had 415.41 days of inventory on hand. This was a decrease from the previous quarter's DOH of 460.71 days, indicating an improvement in inventory management efficiency.
However, it is important to note that in the quarters ending December 31, 2022, and September 30, 2022, Textron Inc reported exceptionally high DOH figures of 1,298.35 days and 1,383.52 days, respectively. These abnormally high values could suggest potential issues with inventory management, such as overstocking or slow-moving inventory.
Looking back further, the company has shown a decreasing trend in DOH from the end of 2020 to the beginning of 2021, with the DOH decreasing from 171.17 days to 118.73 days by the end of March 2020. This improvement indicates that Textron Inc may have implemented more effective inventory control measures during this period.
Overall, Textron Inc's days of inventory on hand have fluctuated widely in recent quarters, with some periods indicating potential inefficiencies in inventory management. It would be important for the company to analyze the reasons behind these fluctuations and work towards maintaining a healthy balance between inventory levels and sales activity.
Peer comparison
Dec 31, 2023