Incitec Pivot (ASX:IPL) Inventory Turnover : 1.66 (As of Sep. 2023)

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What is Incitec Pivot 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. Incitec Pivot's Cost of Goods Sold for the six months ended in Sep. 2023 was A$1,554 Mil. Incitec Pivot's Average Total Inventories for the quarter that ended in Sep. 2023 was A$938 Mil. Incitec Pivot's Inventory Turnover for the quarter that ended in Sep. 2023 was 1.66.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Incitec Pivot's Days Inventory for the six months ended in Sep. 2023 was 110.18.

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. Incitec Pivot's Inventory-to-Revenue for the quarter that ended in Sep. 2023 was 0.33.

Incitec Pivot Inventory Turnover Historical Data

The historical data trend for Incitec Pivot'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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Incitec Pivot Inventory Turnover Chart

Incitec Pivot Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Inventory Turnover

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3.57

3.40

3.91

3.79

3.23

Incitec Pivot Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Inventory Turnover	Get a 7-Day Free Trial															2.04	1.35	1.96	1.34	1.66

Incitec Pivot Inventory Turnover Calculation

Incitec Pivot's Inventory Turnover for the fiscal year that ended in Sep. 2023 is calculated as

	Inventory Turnover (A: Sep. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Sep. 2023 )	/ (	(Total Inventories (A: Sep. 2022 )	+	Total Inventories (A: Sep. 2023 ))	/	count )
=	2929	/ (	(993.6	+	817.4)	/	2 )
=	2929	/	905.5
=	3.23

Incitec Pivot'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: Mar. 2023 )	+	Total Inventories (Q: Sep. 2023 ))	/	count )
=	1554.3	/ (	(1059.3	+	817.4)	/	2 )
=	1554.3	/	938.35
=	1.66

Incitec Pivot (ASX:IPL) 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.

Incitec Pivot's Days Inventory for the six 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
	=	938.35	/	1554.3	*	365 / 2
	=	110.18

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.

Incitec Pivot'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 )
	=	938.35	/	2804.3
	=	0.33

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.

Incitec Pivot Inventory Turnover Related Terms

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Incitec Pivot (ASX:IPL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Incitec Pivot Ltd (ASX:IPL) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

INCZY:USA ICPVF:USA I5P:Germany

Address

28 Freshwater Place, Level 8, Southbank, Melbourne, VIC, AUS, 3006

Website

https://www.incitecpivot.com.au

Incitec Pivot is a leading global explosives company with operations in Australia, Asia, and the Americas. We estimate its share of the global commercial explosives market at about 15%. Explosives contributes around 80% of EBIT. Incitec Pivot is also a major Australian fertilizer producer and distributor and is the only Australian manufacturer of ammonium phosphates and urea. Ammonium phosphates are sold in the domestic market and exported.

Incitec Pivot (ASX:IPL) Headlines

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