RPC Inc (RES)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		12.45	9.43	10.52	10.99	9.82	12.88	11.69	11.02	10.88	7.67	6.70	6.00	9.04	11.86	12.63	14.40	12.66	12.86	12.09	11.87
DOH	days	29.31	38.71	34.69	33.22	37.18	28.34	31.22	33.14	33.54	47.60	54.45	60.82	40.39	30.77	28.90	25.34	28.83	28.38	30.18	30.74

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 12.45
= 29.31

The days of inventory on hand (DOH) for RPC, Inc. have exhibited fluctuations over the past eight quarters. In Q4 2023, the company had 37.15 days of inventory on hand, slightly higher than the previous quarter's 35.88 days. This indicates that RPC, Inc. took longer to convert its inventory into sales in Q4 2023 compared to Q3 2023.

Looking back over the quarters, there was a general trend of decreasing DOH from Q1 2022 to Q2 2023, with the lowest point at 30.22 days in Q1 2023. However, the trend reversed in the following quarters, with an increase in DOH.

The increase in DOH from Q1 2023 to Q4 2023 suggests that RPC, Inc. may be experiencing challenges with inventory management or facing slower sales. A higher DOH can tie up capital in inventory and indicate inefficiencies in the company's operations.

Overall, RPC, Inc. should closely monitor its inventory levels and strive to strike a balance between carrying enough inventory to meet demand and avoiding excess stock that could lead to increased holding costs and potential obsolescence.