Royal Gold Inc (RGLD)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 13.31 | 10.55 | 6.86 | 9.89 | 9.49 | |
| DOH | days | 27.42 | 34.59 | 53.22 | 36.91 | 38.45 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 13.31
= 27.42
The days of inventory on hand (DOH) for Royal Gold, Inc. have varied over the past five years. As of December 31, 2023, the company had 39.47 days of inventory on hand, showing an improvement from the previous year's figure of 48.81 days. This indicates that the company is managing its inventory more efficiently and turning it over at a faster rate.
Looking back to June 30, 2021, the DOH was significantly higher at 69.48 days, suggesting that the company held excess inventory relative to its sales level at that time. The decrease in DOH since then indicates a positive trend towards better inventory management, potentially leading to lower carrying costs and improved liquidity.
Comparing the current DOH to figures from June 30, 2020, and June 30, 2019, we see fluctuations in inventory management performance. The trend over the past five years suggests some level of volatility in Royal Gold, Inc.'s inventory management practices, emphasizing the importance of monitoring and continuously optimizing the company's inventory levels.