Hongcheng Environmental Technology Co (HKSE:02265) Inventory Turnover : 0.96 (As of Dec. 2023)

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What is Hongcheng Environmental Technology 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. Hongcheng Environmental Technology Co's Cost of Goods Sold for the six months ended in Dec. 2023 was HK$33.2 Mil. Hongcheng Environmental Technology Co's Average Total Inventories for the quarter that ended in Dec. 2023 was HK$34.4 Mil. Hongcheng Environmental Technology Co's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.96.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Hongcheng Environmental Technology Co's Days Inventory for the six months ended in Dec. 2023 was 189.20.

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. Hongcheng Environmental Technology Co's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.53.

Hongcheng Environmental Technology Co Inventory Turnover Historical Data

The historical data trend for Hongcheng Environmental Technology 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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Hongcheng Environmental Technology Co Inventory Turnover Chart

Hongcheng Environmental Technology Co Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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4.70

4.05

3.95

3.64

1.82

Hongcheng Environmental Technology Co Semi-Annual Data
	Dec18	Dec19	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Inventory Turnover	Get a 7-Day Free Trial				2.03	1.51	1.82	0.76	0.96

Hongcheng Environmental Technology Co Inventory Turnover Calculation

Hongcheng Environmental Technology Co'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 )
=	52.889	/ (	(20.639	+	37.569)	/	2 )
=	52.889	/	29.104
=	1.82

Hongcheng Environmental Technology 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 )
=	33.171	/ (	(31.207	+	37.569)	/	2 )
=	33.171	/	34.388
=	0.96

Hongcheng Environmental Technology Co (HKSE:02265) 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.

Hongcheng Environmental Technology 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
	=	34.388	/	33.171	*	365 / 2
	=	189.20

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.

Hongcheng Environmental Technology 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 )
	=	34.388	/	64.346
	=	0.53

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.

Hongcheng Environmental Technology Co Inventory Turnover Related Terms

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Hongcheng Environmental Technology Co (HKSE:02265) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » Hongcheng Environmental Technology Co Ltd (HKSE:02265) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

Yeyan Road North, Dadongzhuang Village North, Shahe Town, Shandong Province, Yantai, Laizhou, CHN

Website

http://www.sdhcgroup.cn

Hongcheng Environmental Technology Co Ltd is an investment holding company. The company and its subsidiaries are engaged in the provision of gold mine hazardous waste treatment services and recycling and extracting therefrom resources with economic value for sale, such as pyrite concentrate.

Executives

Zeming International Investment Co., Ltd.	2101 Beneficial owner
Liu Ze Ming	2201 Interest of corporation controlled by you
Li Li Yan	2202 Interest of your spouse

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