United Rentals Inc (URI)

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		41.56	40.60	36.50	32.24	28.65	33.44	31.46	33.81	35.75	34.08	31.41	46.42	42.78	50.26	52.17	49.77	47.34	42.29	38.67	40.25
DOH	days	8.78	8.99	10.00	11.32	12.74	10.92	11.60	10.80	10.21	10.71	11.62	7.86	8.53	7.26	7.00	7.33	7.71	8.63	9.44	9.07

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 41.56
= 8.78

The days of inventory on hand (DOH) for United Rentals, Inc. have shown a gradual decline from 17.67 days as of December 31, 2022, to 12.13 days as of December 31, 2023. This indicates that the company has been able to manage its inventory more efficiently over the past year. Lower DOH values suggest that the company is selling its inventory at a faster rate, which can lead to reduced holding costs and better liquidity.

The decreasing trend in DOH could be a result of improved inventory management practices, better forecasting of customer demand, or effective supply chain management. However, it's important to note that a very low DOH could also indicate stockouts and potential lost sales, so the optimal DOH value may vary by industry and company strategy.

Overall, the improvement in DOH reflects positively on United Rentals, Inc.'s ability to manage its inventory effectively, which can have a positive impact on the company's working capital and profitability.