Rush Enterprises A Inc (RUSHA)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		3.51	3.70	3.71	3.94	3.93	3.80	3.64	3.84	3.95	5.37	4.95	4.32	4.50	4.17	4.26	3.99	3.61	3.60	3.16	3.14
DOH	days	103.84	98.64	98.26	92.58	92.93	96.10	100.29	95.09	92.31	67.98	73.70	84.43	81.15	87.51	85.67	91.56	101.17	101.47	115.61	116.14

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.51
= 103.84

The Days of Inventory on Hand (DOH) ratio for Rush Enterprises A Inc has shown fluctuations over the past few periods. DOH represents the average number of days it takes for a company to sell its inventory.

Analyzing the trend, we observe that the DOH ratio has generally been above 90 days, indicating that Rush Enterprises A Inc holds its inventory for a considerable period before selling it. The ratio peaked at 116.14 days in Q3 2019 but has since shown a decreasing trend.

The recent DOH figures have ranged between approximately 90 to 100 days in 2022 and 2023, suggesting that the company may have made efforts to streamline its inventory management and reduce the time it takes to sell its goods.

It is important for Rush Enterprises A Inc to strike a balance with their inventory levels to avoid holding excessive stock, which could tie up capital and increase storage costs. Monitoring the DOH ratio over time can provide insights into the company's inventory management efficiency and overall operations.