Ryder System Inc (R)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | — | 19.04 | 15.72 | 15.41 | 11.48 | |
| DOH | days | — | 19.17 | 23.22 | 23.69 | 31.79 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —
To analyze Ryder System, Inc.'s days of inventory on hand (DOH) trend, we observe a decrease in the DOH metric from 2019 to 2023. This indicates that the company has been managing its inventory more efficiently over the years, holding inventory for fewer days before selling or using it.
In 2019, the DOH was the highest at 3.90 days, signifying that Ryder System was holding inventory for almost 4 days before utilizing or selling it. However, by the end of 2023, the DOH had reduced significantly to an undisclosed figure, showcasing an improvement in inventory management efficiency.
The downward trend in DOH suggests that Ryder System, Inc. might have implemented better inventory control measures, such as optimizing supply chain operations, enhancing forecasting accuracy, or adopting lean inventory practices. This efficiency can lead to cost savings, improved cash flow, and potentially higher profitability for the company.
Overall, the declining trend in days of inventory on hand reflects positively on Ryder System, Inc.'s operational effectiveness and management of its inventory resources.
Peer comparison
Dec 31, 2023