New World Development Co (HKSE:00017) Inventory Turnover : 0.12 (As of Dec. 2023)

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What is New World Development Co 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. New World Development Co's Cost of Goods Sold for the six months ended in Dec. 2023 was HK$9,808 Mil. New World Development Co's Average Total Inventories for the quarter that ended in Dec. 2023 was HK$79,134 Mil. New World Development Co's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.12.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. New World Development Co's Days Inventory for the six months ended in Dec. 2023 was 1,472.45.

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. New World Development Co's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 4.64.

New World Development Co Inventory Turnover Historical Data

The historical data trend for New World Development Co'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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New World Development Co Inventory Turnover Chart

New World Development Co Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Inventory Turnover

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0.75

0.62

0.63

0.57

0.91

New World Development Co Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															0.29	0.29	0.19	0.74	0.12

New World Development Co Inventory Turnover Calculation

New World Development Co's Inventory Turnover for the fiscal year that ended in Jun. 2023 is calculated as

	Inventory Turnover (A: Jun. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jun. 2023 )	/ (	(Total Inventories (A: Jun. 2022 )	+	Total Inventories (A: Jun. 2023 ))	/	count )
=	73764.3	/ (	(84341.7	+	78458.4)	/	2 )
=	73764.3	/	81400.05
=	0.91

New World Development Co'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: Jun. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	9808.1	/ (	(78458.4	+	79808.9)	/	2 )
=	9808.1	/	79133.65
=	0.12

New World Development Co (HKSE:00017) 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.

New World Development Co's Days Inventory for the six 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
	=	79133.65	/	9808.1	*	365 / 2
	=	1,472.45

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.

New World Development Co'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 )
	=	79133.65	/	17065.5
	=	4.64

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.

New World Development Co Inventory Turnover Related Terms

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New World Development Co (HKSE:00017) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » New World Development Co Ltd (HKSE:00017) » Definitions » Inventory Turnover

Traded in Other Exchanges

NDVLY:USA NWWDF:USA NWDA:Germany

Address

16-18 Queen's Road, Central, 30th Floor, New World Tower, Hong Kong, HKG

Website

https://www.nwd.com.hk

New World Development, or NWD, is the listed property arm of Chow Tai Fook, owned by the Cheng family. Chow Tai Fook owns a 45% stake in NWD, which mainly engages in residential property development and investment properties of retail malls and offices in Hong Kong and mainland China. NWD also develops high-end hotels across Hong Kong, mainland China and in Southeast Asia. Additionally, NWD holds a 75% interest in New World Department Store China, which operates 24 department stores in mainland China.

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