Reliance Communications (BOM:532712) Inventory Turnover : 20.00 (As of Mar. 2024)

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What is Reliance Communications 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 Communications's Cost of Goods Sold for the three months ended in Mar. 2024 was ₹400 Mil. Reliance Communications's Average Total Inventories for the quarter that ended in Mar. 2024 was ₹20 Mil. Reliance Communications's Inventory Turnover for the quarter that ended in Mar. 2024 was 20.00.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Reliance Communications's Days Inventory for the three months ended in Mar. 2024 was 4.56.

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 Communications's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.02.

Reliance Communications Inventory Turnover Historical Data

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

Reliance Communications Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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23.20

18.43

23.61

112.50

87.50

Reliance Communications 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															23.00	22.50	23.00	22.00	20.00

Reliance Communications Inventory Turnover Calculation

Reliance Communications'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 )
=	1750	/ (	(20	+	20)	/	2 )
=	1750	/	20
=	87.50

Reliance Communications'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 )
=	400	/ (	(0	+	20)	/	1 )
=	400	/	20
=	20.00

Reliance Communications (BOM:532712) 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 Communications'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
	=	20	/	400	*	365 / 4
	=	4.56

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 Communications'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 )
	=	20	/	930
	=	0.02

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 Communications Inventory Turnover Related Terms

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Reliance Communications (BOM:532712) Business Description

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GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Reliance Communications Ltd (BOM:532712) » Definitions » Inventory Turnover

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RCOM:India

Address

H Block, 1st Floor, Thane Belapur Road, Dhirubhai Ambani Knowledge City, Koparkhairane, Navi Mumbai, MH, IND, 400 710

Website

https://www.rcom.co.in

Reliance Communications Ltd is a triple-play telecommunications company that provides mobile, voice, and broadband services in two segments: India Operations and global Operations. The India Operations segment accounts for the majority of overall company revenue and includes wireless, mobile, and satellite TV services to Indian retail customers as well as voice, broadband access services to enterprises. The global Operations segment offers international data and network services, enterprise services, and data services to global customers. These services are offered over the group's owned submarine cable infrastructure and Indian fiber network. Additionally, Reliance Communications owns mobile phone tower infrastructure.

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