Royal Caribbean Cruises Ltd (RCL)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 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
Inventory turnover		35.46	36.18	38.57	37.15	32.77	31.74	34.67	32.64	29.53	25.16	21.06	19.83	17.69	12.55	9.65	12.88	23.29	27.95	34.70	34.66
DOH	days	10.29	10.09	9.46	9.82	11.14	11.50	10.53	11.18	12.36	14.51	17.33	18.41	20.63	29.08	37.83	28.34	15.67	13.06	10.52	10.53

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 35.46
= 10.29

The days of inventory on hand (DOH) for Royal Caribbean Cruises Ltd have fluctuated over the period from March 31, 2020, to December 31, 2024. The DOH measures the average number of days a company holds inventory before selling it.

The trend shows that the company had relatively low DOH in the earlier period, indicating efficient inventory management. However, there was a noticeable increase in DOH by March 31, 2021, which continued to rise until June 30, 2021, reaching a peak of 37.83 days. This substantial increase may suggest challenges in inventory turnover and potential excess inventory levels.

From September 30, 2021, to December 31, 2022, the DOH gradually decreased, indicating improvements in inventory management efficiency. The decreasing trend continued until June 30, 2024, showing a steady decline in the number of days inventory was held on hand.

Overall, the trend in DOH for Royal Caribbean Cruises Ltd suggests fluctuations in inventory management practices over the analyzed period. The company experienced a peak in DOH in mid-2021 but managed to improve its inventory turnover efficiency in the following periods, leading to lower DOH figures by December 31, 2024.