Aichi Steel (FRA:8T2) Inventory Turnover : 1.14 (As of Mar. 2024)

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What is Aichi Steel 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. Aichi Steel's Cost of Goods Sold for the three months ended in Mar. 2024 was €377 Mil. Aichi Steel's Average Total Inventories for the quarter that ended in Mar. 2024 was €330 Mil. Aichi Steel's Inventory Turnover for the quarter that ended in Mar. 2024 was 1.14.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Aichi Steel's Days Inventory for the three months ended in Mar. 2024 was 80.04.

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. Aichi Steel's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.77.

Aichi Steel Inventory Turnover Historical Data

The historical data trend for Aichi Steel'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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Aichi Steel Inventory Turnover Chart

Aichi Steel Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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5.76

4.88

5.56

4.72

4.44

Aichi Steel 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															1.21	1.12	1.18	1.26	1.14

Aichi Steel Inventory Turnover Calculation

Aichi Steel'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 )
=	1581.042	/ (	(379.996	+	332.927)	/	2 )
=	1581.042	/	356.4615
=	4.44

Aichi Steel'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 )
=	376.742	/ (	(327.978	+	332.927)	/	2 )
=	376.742	/	330.4525
=	1.14

Aichi Steel (FRA:8T2) 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.

Aichi Steel'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
	=	330.4525	/	376.742	*	365 / 4
	=	80.04

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.

Aichi Steel'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 )
	=	330.4525	/	427.078
	=	0.77

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.

Aichi Steel Inventory Turnover Related Terms

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Aichi Steel (FRA:8T2) Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Aichi Steel Corp (FRA:8T2) » Definitions » Inventory Turnover

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5482:Japan

Address

1 Wanowari Araomachi, Aichi-ken, Tokai, JPN, 476-8666

Website

http://www.aichi-steel.co.jp

Aichi Steel Corp is a Japan-based company that manufactures and sells steel, forged products and electro-magnetic products. The company operates through four segments. The steel segment manufactures and sells specialty steel, stainless steel, and titanium. The forged product segment produces a wide variety of forgings. The electromagnetic products segment manufactures electromagnetic components. The steel and forged products segments are the two biggest segments, representing the majority of Aichi Steel's sales. Aichi Steel is a member of Toyota Group. Toyota Motor and Toyota Tsusho are its major customers. The company generates most of its revenue from the Japanese domestic market.

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