RPC Inc (RES)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 9.63 | 10.80 | 12.06 | 9.32 | 6.95 | |
| DOH | days | 37.90 | 33.80 | 30.26 | 39.17 | 52.52 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.63
= 37.90
The days of inventory on hand (DOH) for RPC Inc has shown a decreasing trend over the years, indicating an improvement in inventory management efficiency. The DOH decreased from 52.52 days on December 31, 2020, to 39.17 days on December 31, 2021, and further decreased to 30.26 days on December 31, 2022. However, there was a slight increase to 33.80 days on December 31, 2023, followed by a slight increase to 37.90 days on December 31, 2024.
Overall, the company has managed to reduce the number of days it takes to sell its inventory, which is a positive sign as it suggests better control over inventory levels and potentially lower holding costs. Further analysis of the reasons for the fluctuations in DOH in the last two years could provide insights into the effectiveness of RPC Inc's inventory management strategies.
Peer comparison
Dec 31, 2024