Reliance Steel & Aluminum Co (RS)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.80 | 5.14 | 5.90 | 4.65 | 4.25 | |
| DOH | days | 76.04 | 71.00 | 61.86 | 78.49 | 85.88 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.80
= 76.04
Reliance Steel & Aluminum Co's days of inventory on hand (DOH) has exhibited a decreasing trend over the past five years. As of December 31, 2020, the company held inventory for approximately 85.88 days, which decreased to 78.49 days by the end of 2021. This downward trend continued in 2022, with the DOH further declining to 61.86 days. However, there was a slight increase in 2023 to 71.00 days, followed by a moderate increase to 76.04 days by the end of 2024.
The decreasing trend in inventory days on hand signifies an improvement in inventory management efficiency, where the company is able to turn over its inventory faster. However, the slight increases in 2023 and 2024 may indicate potential challenges in managing inventory levels effectively during those years. Further analysis of the company's inventory management strategies and demand forecasting may provide insights into the fluctuations observed in the days of inventory on hand over the years.