RPM International Inc (RPM)
Days of inventory on hand (DOH)
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.93 | 5.88 | 5.13 | 5.90 | 6.36 | |
| DOH | days | 52.70 | 62.10 | 71.13 | 61.92 | 57.41 |
May 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.93
= 52.70
The days of inventory on hand (DOH) for RPM International Inc have shown varying trends over the past five years. The DOH decreased from 57.41 days in 2020 to 52.70 days in 2024, indicating an improvement in inventory management efficiency.
However, it is important to note that there was a significant increase in DOH from 2020 to 2022, peaking at 71.13 days in 2022. This spike may suggest potential issues with inventory control or demand forecasting during that period.
Overall, the current DOH of 52.70 days in 2024 indicates that the company is holding inventory for approximately 52 days before selling it, which is a positive sign of effective inventory management. A lower DOH typically suggests that inventory turnover is higher, leading to lower carrying costs and potentially higher profitability.
Peer comparison
May 31, 2024