LG Energy Solution (XKRX:373220) Days Inventory : 80.11 (As of Dec. 2023)

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What is LG Energy Solution Days Inventory?

Days Inventory is also known as Days Sales of Inventory (DSI). LG Energy Solution's Average Total Inventories for the three months ended in Dec. 2023 was ₩6,170,378 Mil. LG Energy Solution's Cost of Goods Sold for the three months ended in Dec. 2023 was ₩7,028,146 Mil. Hence, LG Energy Solution's Days Inventory for the three months ended in Dec. 2023 was 80.11.

The historical rank and industry rank for LG Energy Solution's Days Inventory or its related term are showing as below:

XKRX:373220' s Days Inventory Range Over the Past 10 Years
Min: 78.52 Med: 92.02 Max: 897.92
Current: 86.26

During the past 4 years, LG Energy Solution's highest Days Inventory was 897.92. The lowest was 78.52. And the median was 92.02.

XKRX:373220's Days Inventory is ranked better than
69.56% of 2907 companies
in the Industrial Products industry
Industry Median: 119.85 vs XKRX:373220: 86.26

LG Energy Solution's Days Inventory declined from Dec. 2022 (94.18) to Dec. 2023 (80.11).

Warning Sign:

If a company builds up inventory, it may mean it is having difficulties selling its goods.

Inventory Turnover measures how fast the company turns over its inventory within a year. LG Energy Solution's Inventory Turnover for the three months ended in Dec. 2023 was 1.14.

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. LG Energy Solution's Inventory-to-Revenue for the three months ended in Dec. 2023 was 0.77.

LG Energy Solution Days Inventory Historical Data

The historical data trend for LG Energy Solution's Days Inventory 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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LG Energy Solution Days Inventory Chart

LG Energy Solution Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Days Inventory

897.92

90.76

93.28

78.52

LG Energy Solution Quarterly Data
	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Days Inventory	Get a 7-Day Free Trial							94.18	88.59	90.13	93.91	80.11

Competitive Comparison of LG Energy Solution's Days Inventory

For the Specialty Industrial Machinery subindustry, LG Energy Solution's Days Inventory, along with its competitors' market caps and Days Inventory data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

LG Energy Solution's Days Inventory Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, LG Energy Solution's Days Inventory distribution charts can be found below:

* The bar in red indicates where LG Energy Solution's Days Inventory falls into.

LG Energy Solution Days Inventory Calculation

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

LG Energy Solution's Days Inventory for the fiscal year that ended in Dec. 2023 is calculated as

	Days Inventory (A: Dec. 2023 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )	/	Cost of Goods Sold (A: Dec. 2023 )	*	Days in Period
=	( (6995629	+	5396336)	/	2 )	/	28802437	*	365
=	6195982.5					/	28802437	*	365
=	78.52

LG Energy Solution's Days Inventory for the quarter that ended in Dec. 2023 is calculated as:

	Days Inventory (Q: Dec. 2023 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
=	( (6944420	+	5396336)	/	2 )	/	7028146	*	365 / 4
=	6170378					/	7028146	*	365 / 4
=	80.11

LG Energy Solution (XKRX:373220) Days Inventory Explanation

Days Inventory indicates the liquidity of the inventory. Generally, a lower Days Inventory is preferred as it indicates a shorter duration to clear off the inventory. An increase of the ratio may indicate the company's sales slowed. Similar ratios related to Days Inventory are:

1. Inventory Turnover measures how fast the company turns over its inventory within a year.

LG Energy Solution's Inventory Turnover for the three months ended in Dec. 2023 is calculated as

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	7028146	/	6170378
	=	1.14

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.

LG Energy Solution's Inventory to Revenue for the three months ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories	/	Revenue
	=	6170378	/	8001324
	=	0.77

Be Aware

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.

LG Energy Solution Days Inventory Related Terms

Thank you for viewing the detailed overview of LG Energy Solution's Days Inventory provided by GuruFocus.com. Please click on the following links to see related term pages.

LG Energy Solution (XKRX:373220) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » LG Energy Solution Ltd (XKRX:373220) » Definitions » Days Inventory

Comparable Companies

Traded in Other Exchanges

N/A

Address

Yeongdeungpo-gu, Yeoui-daero, Seoul, KOR

Website

https://www.lgensol.com

LG Energy Solution, or LGES, is the third-largest battery maker for electric vehicles, or EVs, with about 14% global share in the first half of 2023, according to SNE Research. The EV battery segment is the largest revenue contributor, which accounted for close to 60% of total revenue in 2022. Besides EV batteries, LGES also manufactures batteries for mobility, mobile phones, laptops, electrical devices, and energy storage systems. The company was spun off from LG Chem's battery division in December 2020 and listed on the Korea Exchange in January 2022. It has global manufacturing facilities in Korea, China, Poland and the United States. Key customers include General Motors, Tesla, Volkswagen, Hyundai Motors and Stellantis.

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