Regal Beloit Corporation (RRX)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.13 | 2.97 | 3.15 | 3.30 | 3.28 | 3.05 | 2.40 | 2.02 | 2.65 | 2.64 | 2.39 | 2.27 | 2.46 | 2.98 | 3.04 | 2.96 | 3.04 | 3.07 | 3.11 | 3.49 | |
| DOH | days | 116.54 | 122.73 | 115.89 | 110.63 | 111.17 | 119.58 | 151.93 | 180.80 | 137.53 | 138.33 | 152.96 | 160.91 | 148.25 | 122.44 | 120.08 | 123.40 | 120.08 | 118.88 | 117.41 | 104.49 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.13
= 116.54
The days of inventory on hand (DOH) for Regal Beloit Corporation have exhibited fluctuations over the analyzed period. The DOH increased from 104.49 days as of March 31, 2020, to a peak of 180.80 days by March 31, 2023. This significant increase indicates that the company held inventory for a longer period before selling it, which may imply higher carrying costs and lower inventory turnover efficiency.
Following this peak, the DOH decreased to 110.63 days by March 31, 2024, indicating a potential improvement in inventory management efficiency. However, there were some fluctuations in the following quarters, with the DOH ranging between 111.17 days and 122.73 days up to September 30, 2024.
It is essential for the company to monitor and manage its inventory levels effectively to optimize working capital and enhance operational efficiency. An increasing DOH may suggest overstocking or sluggish sales, while a decreasing DOH could indicate potential sales growth or improved inventory controls. It would be beneficial for Regal Beloit Corporation to continue monitoring its inventory levels and implementing strategies to maintain an optimal balance to support its overall financial performance.
Peer comparison
Dec 31, 2024