Alta Equipment Group (FRA:4ZL) Inventory Turnover : 0.59 (As of Mar. 2024)

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What is Alta Equipment Group 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. Alta Equipment Group's Cost of Goods Sold for the three months ended in Mar. 2024 was €295 Mil. Alta Equipment Group's Average Total Inventories for the quarter that ended in Mar. 2024 was €498 Mil. Alta Equipment Group's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.59.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Alta Equipment Group's Days Inventory for the three months ended in Mar. 2024 was 153.88.

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. Alta Equipment Group's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 1.23.

Alta Equipment Group Inventory Turnover Historical Data

The historical data trend for Alta Equipment Group'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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Alta Equipment Group Inventory Turnover Chart

Alta Equipment Group Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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2.88

3.98

3.69

2.91

Alta Equipment Group 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															0.69	0.70	0.69	0.75	0.59

Alta Equipment Group Inventory Turnover Calculation

Alta Equipment Group's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	1255.924	/ (	(377.317	+	486.652)	/	2 )
=	1255.924	/	431.9845
=	2.91

Alta Equipment Group'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 )
=	295.32	/ (	(486.652	+	509.404)	/	2 )
=	295.32	/	498.028
=	0.59

Alta Equipment Group (FRA:4ZL) 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.

Alta Equipment Group'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
	=	498.028	/	295.32	*	365 / 4
	=	153.88

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.

Alta Equipment Group'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 )
	=	498.028	/	406.272
	=	1.23

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.

Alta Equipment Group Inventory Turnover Related Terms

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Alta Equipment Group (FRA:4ZL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Alta Equipment Group Inc (FRA:4ZL) » Definitions » Inventory Turnover

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ALTGpA.PFD:USA ALTG:USA

Address

13211 Merriman Road, Livonia, MI, USA, 48150

Website

https://www.altaequipment.com

Alta Equipment Group Inc is an integrated equipment dealership platform in the U.S. Its segments are Material Handling and Construction Equipment. The Material Handling segment is engaged in operations related to the sale, service, and rental of lift trucks in Michigan, Illinois, Indiana, New York, Virginia, and throughout the New England states whereas, the Construction Equipment segment is principally engaged in operations related to the sale, service, and rental of construction equipment in Michigan, Indiana, Illinois, Ohio, New York, Florida and throughout the New England States.

Alta Equipment Group (FRA:4ZL) Headlines

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