Republic Services Inc (RSG)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 111.85 | 102.66 | 112.84 | 124.31 | 133.12 | |
| DOH | days | 3.26 | 3.56 | 3.23 | 2.94 | 2.74 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 111.85
= 3.26
To analyze Republic Services, Inc.'s Days of Inventory on Hand (DOH) over the past five years, the trend indicates a slight increase in the number of days it takes for the company to sell its inventory. The DOH was 3.97 days at the end of 2023, compared to 3.29 days at the end of 2019. This suggests that the company may be holding onto its inventory slightly longer over the years.
The increase in DOH may indicate potential issues such as slower inventory turnover, overstocking, or inefficiencies in inventory management. A higher DOH can tie up working capital, leading to increased carrying costs and potentially impacting cash flow.
It is important for Republic Services, Inc. to closely monitor and manage its inventory levels to optimize efficiency, reduce holding costs, and ensure that inventory turnover remains at a healthy level. Further analysis and comparison with industry benchmarks or competitors' ratios could provide additional insights into the company's inventory management performance.
Peer comparison
Dec 31, 2023