Rush Enterprises A Inc (RUSHA)

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		3.51	3.19	3.35	3.10	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
DOH	days	104.02	114.25	108.94	117.69	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

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.51
= 104.02

Days of Inventory on Hand (DOH) is a financial ratio that measures the average number of days a company holds its inventory before it is sold. For Rush Enterprises A Inc, the trend in DOH from March 31, 2020, to December 31, 2024, shows fluctuations.

The DOH was relatively stable around the 80-90 days range from March 2020 to March 2022, indicating that the company was maintaining its inventory levels consistently during this period. However, there was a significant increase in DOH in June 2022 to 100.29 days, followed by further increase to 117.69 days by March 2024.

A high DOH may indicate that Rush Enterprises A Inc is facing challenges in managing its inventory efficiently, leading to potential issues such as obsolete inventory, higher storage costs, and reduced liquidity. It could also suggest potential sales challenges or a slowdown in demand for its products.

Management should closely monitor and analyze the reasons behind the increasing trend in DOH to identify any operational inefficiencies or changes in market dynamics. Implementing effective inventory management strategies and optimizing supply chain processes may help in reducing DOH and improving overall operational performance and profitability.