Sturm Ruger & Company Inc (RGR)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.51 | 5.14 | 6.40 | 10.29 | 12.98 | |
| DOH | days | 66.28 | 71.02 | 57.06 | 35.47 | 28.12 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.51
= 66.28
Sturm Ruger & Company Inc's Days of Inventory on Hand (DOH) has shown an increasing trend over the past five years, indicating a lengthening time period for the company to sell its inventory. From 28.12 days on December 31, 2020, the DOH has steadily climbed to 35.47 days by December 31, 2021, and further increased to 57.06 days by December 31, 2022. This acceleration continued with DOH reaching 71.02 days on December 31, 2023, and then slightly decreased to 66.28 days by December 31, 2024.
A higher DOH value may suggest slower inventory turnover, potentially indicating inefficiencies in inventory management, obsolete inventory, or changes in demand patterns affecting sales velocity. It is crucial for Sturm Ruger & Company Inc to assess and improve its inventory management processes to optimize working capital efficiency and minimize carrying costs associated with an increased DOH.
Monitoring and analyzing the DOH trend will enable the company to make informed decisions regarding inventory levels, production volumes, and sales strategies to maintain a healthy balance between keeping adequate inventory for customer demand while avoiding excessive stock buildup that could tie up valuable resources.
Peer comparison
Dec 31, 2024