RPC Inc (RES)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		12.46	13.62	10.88	10.99	12.66
DOH	days	29.29	26.80	33.54	33.20	28.83

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 12.46
= 29.29

The days of inventory on hand (DOH) for RPC, Inc. have shown fluctuations over the past five years. In 2023, the company had 37.15 days of inventory on hand, compared to 32.57 days in 2022, indicating a slight increase. This suggests that the company may have increased its inventory levels relative to sales, which could tie up more capital in inventory.

In 2021, the DOH was 43.47 days, reflecting a higher level of inventory on hand compared to the previous year. This could indicate potential inefficiencies in managing inventory or slower inventory turnover during that period.

On the other hand, in 2020, RPC, Inc. had 62.96 days of inventory on hand, which was significantly higher compared to the other years in the dataset. This may signal excess inventory levels or challenges in selling the existing inventory, potentially leading to increased carrying costs and lower liquidity.

In 2019, the company had 40.07 days of inventory on hand, which was lower than in 2020 but higher than in 2022. This suggests that the company may have adjusted its inventory management practices during that year.

Overall, monitoring the days of inventory on hand can provide insights into the company's efficiency in managing inventory levels, carrying costs, and potential sales risks. Fluctuations in DOH over the years indicate changes in inventory management strategies that may impact the company's financial performance and operational efficiency.