Royal Caribbean Cruises Ltd (RCL)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		46.72	42.83	35.71	55.96	54.78
DOH	days	7.81	8.52	10.22	6.52	6.66

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 46.72
= 7.81

The days of inventory on hand (DOH) for Royal Caribbean Group has shown variability over the past five years. In 2023, the company had 18.94 days of inventory on hand, which decreased compared to the previous year. This suggests that the company was able to manage its inventory more efficiently in 2023.

In 2022, the DOH was 22.22 days, indicating that the company held inventory for a slightly longer period compared to 2023. However, there was a significant decrease from 2021, where the DOH spiked to 62.72 days. This increase could potentially indicate issues with inventory management or demand forecasting during that year.

In 2020, the DOH was 41.88 days, which was a notable increase from 2019 when the company had 16.54 days of inventory on hand. The substantial increase from 2019 to 2020 might suggest challenges in adjusting inventory levels to match demand fluctuations, possibly due to external factors such as the impact of the COVID-19 pandemic on the company's operations.

Overall, the trend in Royal Caribbean Group's DOH indicates fluctuations in inventory management efficiency over the years, with notable improvements in 2023 compared to 2022 and 2021. Monitoring and optimizing inventory levels is crucial for the company to ensure operational effectiveness and cost control in its cruise operations.