RPC Inc (RES)

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 10.54 10.51 10.38 10.46 10.80 11.09 12.32 12.97 12.06 11.35 10.19 9.48 9.32 8.17 7.18 6.47 6.95 7.78 8.65 10.45
DOH days 34.64 34.73 35.16 34.89 33.80 32.90 29.64 28.14 30.26 32.16 35.84 38.49 39.17 44.70 50.83 56.38 52.52 46.94 42.19 34.93

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 10.54
= 34.64

Based on the data provided, RPC Inc's Days of Inventory on Hand (DOH) has shown fluctuations over the reporting periods. DOH reflects the average number of days a company takes to sell its inventory.

From March 31, 2020, to December 31, 2022, RPC Inc's DOH exhibited an increasing trend from 34.93 days to 30.26 days, suggesting the company was holding inventory for a longer period. This trend reversed from March 31, 2023, to December 31, 2024, where DOH increased slightly, but it remained relatively stable within the range of 28.14 to 35.16 days.

The decrease in DOH from March 31, 2023, to December 31, 2024, indicates that RPC Inc may have improved its inventory management efficiency by reducing the holding period, potentially lowering inventory carrying costs and improving cash flow. However, it is crucial to monitor this metric over time to ensure the company maintains optimal inventory levels to meet demand and avoid stockouts or excess inventory situations.