Almarai Co (SAU:2280) Inventory Turnover : 0.62 (As of Mar. 2024)

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What is Almarai Co 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. Almarai Co's Cost of Goods Sold for the three months ended in Mar. 2024 was ﷼3,750 Mil. Almarai Co's Average Total Inventories for the quarter that ended in Mar. 2024 was ﷼6,075 Mil. Almarai Co's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.62.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Almarai Co's Days Inventory for the three months ended in Mar. 2024 was 147.81.

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. Almarai Co's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 1.11.

Almarai Co Inventory Turnover Historical Data

The historical data trend for Almarai Co'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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Almarai Co Inventory Turnover Chart

Almarai Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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2.28

2.26

2.39

2.73

2.39

Almarai Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															0.64	0.57	0.55	0.62	0.62

Almarai Co Inventory Turnover Calculation

Almarai Co's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	13907.805	/ (	(5359.948	+	6283.233)	/	2 )
=	13907.805	/	5821.5905
=	2.39

Almarai Co's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	3750.18	/ (	(6283.233	+	5865.949)	/	2 )
=	3750.18	/	6074.591
=	0.62

Almarai Co (SAU:2280) 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.

Almarai Co's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	6074.591	/	3750.18	*	365 / 4
	=	147.81

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.

Almarai Co's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	6074.591	/	5458.641
	=	1.11

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.

Almarai Co Inventory Turnover Related Terms

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Almarai Co (SAU:2280) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Almarai Co (SAU:2280) » Definitions » Inventory Turnover

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Traded in Other Exchanges

N/A

Address

Exit 7, North Ring Road, P.O. Box 8524, Al Izdihar District, Riyadh, SAU, 11492

Website

https://www.almarai.com

Almarai Co is a manufacturer and distributor of quality and nutritious food and beverages. The company's product portfolio consists of dairy products along with juices, bakery, poultry, and infant formula under the brands Almarai, Joosy Life, Beyti, Teeba, L'usine, 7days, Alyoum, and AlBashayer. Its segments include Dairy and Juice, Bakery, Poultry, and Other activities. The majority of the revenue is derived from the sale of the dairy and Juice segment. Majority of its revenue is generated from Saudi Arabia.

Almarai Co (SAU:2280) Headlines

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