United Spirits (BOM:532432) Inventory Turnover : 0.67 (As of Dec. 2023)

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What is United Spirits 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. United Spirits's Cost of Goods Sold for the three months ended in Dec. 2023 was ₹16,914 Mil. United Spirits's Average Total Inventories for the quarter that ended in Dec. 2023 was ₹25,391 Mil. United Spirits's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.67.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. United Spirits's Days Inventory for the three months ended in Dec. 2023 was 136.98.

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. United Spirits's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.85.

United Spirits Inventory Turnover Historical Data

The historical data trend for United Spirits'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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United Spirits Inventory Turnover Chart

United Spirits Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Inventory Turnover

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2.40

2.62

2.25

2.52

2.78

United Spirits Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															0.65	0.62	0.55	0.64	0.67

United Spirits Inventory Turnover Calculation

United Spirits's Inventory Turnover for the fiscal year that ended in Mar. 2023 is calculated as

	Inventory Turnover (A: Mar. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2023 )	/ (	(Total Inventories (A: Mar. 2022 )	+	Total Inventories (A: Mar. 2023 ))	/	count )
=	60931	/ (	(21567	+	22300)	/	2 )
=	60931	/	21933.5
=	2.78

United Spirits'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: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	16914	/ (	(25391	+	0)	/	1 )
=	16914	/	25391
=	0.67

United Spirits (BOM:532432) 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.

United Spirits's Days Inventory for the three 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
	=	25391	/	16914	*	365 / 4
	=	136.98

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.

United Spirits'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 )
	=	25391	/	30021
	=	0.85

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.

United Spirits Inventory Turnover Related Terms

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United Spirits (BOM:532432) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » United Spirits Ltd (BOM:532432) » Definitions » Inventory Turnover

Traded in Other Exchanges

MCDOWELL-N:India

Address

No. 24, Vittal Mallya Road, UB Tower, Bengaluru, KA, IND, 560 001

Website

https://www.diageoindia.com

United Spirits Ltd manufactures and sells spirits, beer, wine, and other alcoholic beverages. The Company is engaged in the business of manufacture, purchase and sale of beverage alcohol and other allied spirits, including through tie-up manufacturing units and through strategic franchising of some of its brands. Its brand portfolio consists of McDowell's No.1, Royal Challenge, Black Dog, Signature, Antiquity, Director's Special Black, McDowell's Rum, McDowell's Brandy, Bagpiper, Old Tavern, and Haywards among others. Geographically, the firm generates a majority of its revenue from India.

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