Royal Gold Inc (RGLD)

Days of inventory on hand (DOH)

		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	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
Inventory turnover		11.88	11.16	13.31	13.99	12.88	11.90	10.55	9.52	9.97	14.91	10.36	6.88	8.16	8.73	6.84	9.89	14.29	9.52	11.66	9.49
DOH	days	30.71	32.71	27.42	26.09	28.33	30.68	34.59	38.35	36.60	24.47	35.22	53.06	44.71	41.82	53.39	36.91	25.55	38.35	31.29	38.45

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.88
= 30.71

Days of Inventory on Hand (DOH) is a ratio that measures how many days it takes for a company to sell its inventory. A lower DOH indicates that the company is selling its inventory more quickly, which is generally favorable as it reduces the risk of obsolescence and carrying costs.

Analyzing Royal Gold Inc's DOH over the past few quarters, we see fluctuations in the metric. In the most recent quarter, as of June 30, 2024, the DOH was 30.71 days, showing a slight improvement compared to the previous quarter. This suggests that Royal Gold Inc was able to sell its inventory more efficiently in the current period.

Looking back over the past few quarters, there have been some fluctuations in the DOH metric. An increasing trend in DOH over time could indicate potential issues with inventory management, such as overstocking or difficulties in selling products. Conversely, a decreasing trend in DOH is typically viewed positively as it indicates better inventory turnover efficiency.

It is important for Royal Gold Inc to monitor its DOH continuously to ensure optimal inventory management practices. By keeping DOH at an appropriate level, the company can better manage its working capital, reduce holding costs, and improve overall profitability.