Reliance Worldwide (ASX:RWC) Inventory Turnover : 1.23 (As of Dec. 2023)

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What is Reliance Worldwide 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. Reliance Worldwide's Cost of Goods Sold for the six months ended in Dec. 2023 was A$536 Mil. Reliance Worldwide's Average Total Inventories for the quarter that ended in Dec. 2023 was A$434 Mil. Reliance Worldwide's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.23.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Reliance Worldwide's Days Inventory for the six months ended in Dec. 2023 was 147.83.

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. Reliance Worldwide's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.49.

Reliance Worldwide Inventory Turnover Historical Data

The historical data trend for Reliance Worldwide'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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Reliance Worldwide Inventory Turnover Chart

Reliance Worldwide Annual Data

Trend

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Inventory Turnover

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3.00

3.06

3.14

2.87

2.59

Reliance Worldwide Semi-Annual Data
	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Inventory Turnover	Get a 7-Day Free Trial										1.24	1.29	1.16	1.23	1.23

Reliance Worldwide Inventory Turnover Calculation

Reliance Worldwide's Inventory Turnover for the fiscal year that ended in Jun. 2023 is calculated as

	Inventory Turnover (A: Jun. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jun. 2023 )	/ (	(Total Inventories (A: Jun. 2022 )	+	Total Inventories (A: Jun. 2023 ))	/	count )
=	1140.738	/ (	(449.008	+	431.205)	/	2 )
=	1140.738	/	440.1065
=	2.59

Reliance Worldwide's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Jun. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	536.252	/ (	(431.205	+	437.557)	/	2 )
=	536.252	/	434.381
=	1.23

Reliance Worldwide (ASX:RWC) 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.

Reliance Worldwide's Days Inventory for the six months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	434.381	/	536.252	*	365 / 2
	=	147.83

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.

Reliance Worldwide's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	434.381	/	880.756
	=	0.49

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.

Reliance Worldwide Inventory Turnover Related Terms

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Reliance Worldwide (ASX:RWC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Reliance Worldwide Corp Ltd (ASX:RWC) » Definitions » Inventory Turnover

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Traded in Other Exchanges

RLLWF:USA 0EU:Germany

Address

140 William Street, Level 26, Melbourne, VIC, AUS, 3000

Website

https://www.rwc.com

Reliance Worldwide designs, manufactures, and supplies branded plumbing products which are sold across North America, Asia-Pacific, and Europe. The company focuses on push-to-connect plumbing products, including fitting, pipes and valves, under its brands SharkBite, JG Speedfit, and EvoPex. Reliance's products are used in residential and commercial applications for the residential renovation, maintenance, and home improvement end-markets. Reliance sells around 45% of its products to plumbing wholesalers and merchants, 35% to hardware and home improvement retailers (including Home Depot, Lowe's, and Reece) and 20% to original equipment manufacturers of hot water systems.

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