Aarey Drugs & Pharmaceuticals (BOM:524412) Inventory Turnover : 5.94 (As of Mar. 2024)

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What is Aarey Drugs & Pharmaceuticals 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. Aarey Drugs & Pharmaceuticals's Cost of Goods Sold for the three months ended in Mar. 2024 was ₹2,061 Mil. Aarey Drugs & Pharmaceuticals's Average Total Inventories for the quarter that ended in Mar. 2024 was ₹347 Mil. Aarey Drugs & Pharmaceuticals's Inventory Turnover for the quarter that ended in Mar. 2024 was 5.94.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Aarey Drugs & Pharmaceuticals's Days Inventory for the three months ended in Mar. 2024 was 15.36.

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. Aarey Drugs & Pharmaceuticals's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.16.

Aarey Drugs & Pharmaceuticals Inventory Turnover Historical Data

The historical data trend for Aarey Drugs & Pharmaceuticals'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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Aarey Drugs & Pharmaceuticals Inventory Turnover Chart

Aarey Drugs & Pharmaceuticals Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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15.17

19.05

29.37

19.00

12.03

Aarey Drugs & Pharmaceuticals 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															5.48	1.67	2.47	3.25	5.94

Aarey Drugs & Pharmaceuticals Inventory Turnover Calculation

Aarey Drugs & Pharmaceuticals's Inventory Turnover for the fiscal year that ended in Mar. 2024 is calculated as

	Inventory Turnover (A: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2024 )	/ (	(Total Inventories (A: Mar. 2023 )	+	Total Inventories (A: Mar. 2024 ))	/	count )
=	3818.986	/ (	(288.191	+	346.757)	/	2 )
=	3818.986	/	317.474
=	12.03

Aarey Drugs & Pharmaceuticals'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 )
=	2060.51	/ (	(0	+	346.757)	/	1 )
=	2060.51	/	346.757
=	5.94

Aarey Drugs & Pharmaceuticals (BOM:524412) 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.

Aarey Drugs & Pharmaceuticals'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
	=	346.757	/	2060.51	*	365 / 4
	=	15.36

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.

Aarey Drugs & Pharmaceuticals'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 )
	=	346.757	/	2103.54
	=	0.16

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.

Aarey Drugs & Pharmaceuticals Inventory Turnover Related Terms

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Aarey Drugs & Pharmaceuticals (BOM:524412) Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Aarey Drugs & Pharmaceuticals Ltd (BOM:524412) » Definitions » Inventory Turnover

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AAREYDRUGS:India

Address

340/348, Narshi Natha Street, 107, Sahakar Bhavan, Masjid, Mumbai, MH, IND, 400 009

Website

http://www.aareydrugs.com

Aarey Drugs & Pharmaceuticals Ltd is engaged in bulk drug manufacturing and offers products for industrial applications. The company manufactures active pharmaceutical ingredients, intermediates, and specialty chemicals. It is also involved in the trading of industrial solvents and chemicals. The products offered by the company include N-Methyl urea, Dimethyl urea, Mefenamic acid, Metformin, Doxaphylline, BMD among others. The company principally carries its business operations in India.

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