Nestle India (NSE:NESTLEIND) Inventory Turnover : 1.04 (As of Sep. 2023)

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What is Nestle India Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Nestle India's Cost of Goods Sold for the three months ended in Sep. 2023 was ₹21,916 Mil. Nestle India's Average Total Inventories for the quarter that ended in Sep. 2023 was ₹21,084 Mil. Nestle India's Inventory Turnover for the quarter that ended in Sep. 2023 was 1.04.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Nestle India's Days Inventory for the three months ended in Sep. 2023 was 87.79.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Nestle India's Inventory-to-Revenue for the quarter that ended in Sep. 2023 was 0.42.

Nestle India Inventory Turnover Historical Data

The historical data trend for Nestle India's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Nestle India Inventory Turnover Chart

Nestle India Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Inventory Turnover

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5.01

4.73

4.28

4.31

4.40

Nestle India Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Inventory Turnover	Get a 7-Day Free Trial															1.18	1.00	1.16	1.00	1.04

Nestle India Inventory Turnover Calculation

Nestle India's Inventory Turnover for the fiscal year that ended in Dec. 2022 is calculated as

	Inventory Turnover (A: Dec. 2022 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2022 )	/ (	(Total Inventories (A: Dec. 2021 )	+	Total Inventories (A: Dec. 2022 ))	/	count )
=	77498.6	/ (	(15926.5	+	19287.7)	/	2 )
=	77498.6	/	17607.1
=	4.40

Nestle India's Inventory Turnover for the quarter that ended in Sep. 2023 is calculated as

	Inventory Turnover (Q: Sep. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2023 )	/ (	(Total Inventories (Q: Jun. 2023 )	+	Total Inventories (Q: Sep. 2023 ))	/	count )
=	21916	/ (	(21084.2	+	0)	/	1 )
=	21916	/	21084.2
=	1.04

Nestle India (NSE:NESTLEIND) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Nestle India's Days Inventory for the three months ended in Sep. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2023 )	/	Cost of Goods Sold (Q: Sep. 2023 )	*	Days in Period
	=	21084.2	/	21916	*	365 / 4
	=	87.79

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Nestle India's Inventory to Revenue for the quarter that ended in Sep. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	21084.2	/	50095.2
	=	0.42

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Nestle India Inventory Turnover Related Terms

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Nestle India (NSE:NESTLEIND) Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Nestle India Ltd (NSE:NESTLEIND) » Definitions » Inventory Turnover

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500790:India

Address

Nestle House, Jacaranda Marg, M Block, DLF City, Phase II, Gurugram, HR, IND, 122 002

Website

https://www.nestle.in

Nestle India Ltd is a subsidiary of Nestle of Switzerland with business divided into milk products and nutrition, beverages, prepared dishes and cooking aids, chocolate and confectionery, and vending food services. Milk products and nutrition consist of nutritional products for infants and pregnant and breastfeeding mothers. The Powdered and Liquid Beverages product division sells tea and instant coffee under the Nestea, Nescafe Classic, and Nescafe Gold brands. Prepared dishes and cooking aids comprise food-enriching flavors under the Maggi brand. The Confectionery products in chocolate and confectionery are KitKat, Munch Nuts, and Nestle Alpino. The company's business activity falls within a single operating segment, namely Food.

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