Royal Caribbean Cruises Ltd (RCL)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		32.65	31.35	29.53	17.69	23.29
DOH	days	11.18	11.64	12.36	20.63	15.67

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 32.65
= 11.18

The days of inventory on hand (DOH) for Royal Caribbean Cruises Ltd have shown fluctuations over the past few years. As of December 31, 2020, the company held inventory for an average of 15.67 days before it was sold. This figure increased to 20.63 days by December 31, 2021, indicating a potential slowdown in inventory turnover.

However, in the subsequent years, there was a positive trend as the DOH decreased to 12.36 days by December 31, 2022, followed by a slight decline to 11.64 days by December 31, 2023. By December 31, 2024, the DOH further decreased to 11.18 days, suggesting an improvement in inventory management efficiency.

Overall, the decreasing trend in DOH from 2022 to 2024 indicates that Royal Caribbean Cruises Ltd has been able to optimize its inventory levels and improve inventory turnover, potentially resulting in cost savings and better working capital management.