Sturm Ruger & Company Inc (RGR)
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 | 5.14 | 5.32 | 6.13 | 6.75 | 6.40 | 6.68 | 7.41 | 9.55 | 10.29 | 11.55 | 13.53 | 13.97 | 12.98 | 25.98 | 27.62 | 17.34 | 10.99 | 9.64 | 7.95 | 9.52 | |
| DOH | days | 71.02 | 68.65 | 59.50 | 54.07 | 57.06 | 54.66 | 49.24 | 38.24 | 35.47 | 31.61 | 26.98 | 26.13 | 28.12 | 14.05 | 13.21 | 21.05 | 33.22 | 37.87 | 45.92 | 38.33 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.14
= 71.02
The days of inventory on hand (DOH) for Sturm, Ruger & Co., Inc. has shown an increasing trend over the past eight quarters. In Q4 2023, the company had an average of 71.02 days of inventory on hand, which was higher compared to the previous quarter at 68.65 days. This suggests that the company is taking longer to sell its inventory.
Looking further back, the DOH has been on a rising trend since Q1 2022 when it was at 38.24 days. This indicates a potential concern as higher inventory levels tie up working capital and could lead to increased storage costs and potential obsolescence risks.
The gradual increase in DOH over the quarters may highlight inefficiencies in inventory management or challenges in demand forecasting. It would be important for the company to closely monitor and potentially optimize its inventory levels to improve operational efficiency and maintain healthy liquidity levels.
Peer comparison
Dec 31, 2023