Reliance Steel & Aluminum Co (RS)
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 | 4.86 | 4.53 | 4.43 | 4.69 | 5.05 | 4.94 | 4.94 | 5.76 | 5.90 | 5.53 | 4.96 | 5.38 | 4.65 | 4.41 | 4.29 | 4.15 | 4.25 | 4.40 | 4.50 | 4.51 | |
| DOH | days | 75.04 | 80.54 | 82.48 | 77.83 | 72.25 | 73.89 | 73.84 | 63.36 | 61.86 | 65.97 | 73.59 | 67.83 | 78.49 | 82.70 | 85.02 | 87.96 | 85.88 | 82.97 | 81.05 | 80.98 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.86
= 75.04
Reliance Steel & Aluminum Co's Days of Inventory on Hand (DOH) provides insight into how efficiently the company manages its inventory.
Analyzing the trend of DOH over the past several quarters, we observe fluctuations in the number of days it takes for the company to sell its inventory.
Between March 31, 2020, and December 31, 2022, we see a general decreasing trend in DOH, indicating that the company has been able to sell its inventory faster over this period. This may suggest improved inventory management practices or increased sales efficiency.
However, from March 31, 2023, to September 30, 2024, there is a slight increase in DOH, which could indicate potential challenges such as slower sales, overstocking, or inefficiencies in inventory turnover.
It is important for the company to closely monitor and manage its inventory levels to optimize its working capital and avoid excess holding costs associated with maintaining high levels of inventory. Efficient inventory management is crucial for maintaining profitability and liquidity in the business.