United Rentals Inc (URI)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		45.98	41.56	28.65	35.75	42.78
DOH	days	7.94	8.78	12.74	10.21	8.53

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 45.98
= 7.94

United Rentals Inc's days of inventory on hand (DOH) has shown some fluctuations over the years.

On December 31, 2020, the company held inventory for an average of 8.53 days before selling or using it, indicating efficient inventory turnover. The DOH increased to 10.21 days by December 31, 2021, suggesting a slowdown in inventory turnover, possibly due to changes in demand or procurement processes.

By December 31, 2022, the DOH further increased to 12.74 days, reaching its peak in the period analyzed. This may indicate potential issues with inventory management, such as overstocking or slowing sales.

However, the company managed to improve its inventory turnover by December 31, 2023, with the DOH decreasing to 8.78 days. This improvement could be a result of strategic adjustments in inventory management practices.

Finally, as of December 31, 2024, the DOH decreased further to 7.94 days, showing continued efficiency in managing inventory levels. Overall, fluctuations in the DOH of United Rentals Inc reflect changes in the company's inventory management strategies and operational performance during the period analyzed.