Nishat Mills (KAR:NML) Inventory Turnover : 0.71 (As of Mar. 2024)

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What is Nishat Mills 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. Nishat Mills's Cost of Goods Sold for the three months ended in Mar. 2024 was ₨48,404 Mil. Nishat Mills's Average Total Inventories for the quarter that ended in Mar. 2024 was ₨68,637 Mil. Nishat Mills's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.71.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Nishat Mills's Days Inventory for the three months ended in Mar. 2024 was 129.39.

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. Nishat Mills's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 1.21.

Nishat Mills Inventory Turnover Historical Data

The historical data trend for Nishat Mills'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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Nishat Mills Inventory Turnover Chart

Nishat Mills Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Inventory Turnover

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3.23

2.38

2.85

3.54

3.01

Nishat Mills 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															0.62	0.67	0.77	0.56	0.71

Nishat Mills Inventory Turnover Calculation

Nishat Mills'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 )
=	160510.686	/ (	(48129.201	+	58501.862)	/	2 )
=	160510.686	/	53315.5315
=	3.01

Nishat Mills'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 )
=	48403.985	/ (	(73384.655	+	63890.208)	/	2 )
=	48403.985	/	68637.4315
=	0.71

Nishat Mills (KAR:NML) 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.

Nishat Mills'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
	=	68637.4315	/	48403.985	*	365 / 4
	=	129.39

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.

Nishat Mills'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 )
	=	68637.4315	/	56507.526
	=	1.21

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.

Nishat Mills Inventory Turnover Related Terms

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Nishat Mills (KAR:NML) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Nishat Mills Ltd (KAR:NML) » Definitions » Inventory Turnover

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Traded in Other Exchanges

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Address

7, Main Gulberg, Lahore, PB, PAK, 54660

Website

https://www.nishatmillsltd.com

Nishat Mills Ltd is a textile manufacturing firm in Pakistan. The firm produces cotton and also owns the weaving facility in Pakistan catering to home textile and apparel fabrics. The company conducts its activities through multiple segments such as Spinning, Weaving, Dyeing, Home Textile and Terry, Garments and Power Generation. Its processing facilities are specially made to handle heavyweight fabrics like twills, drills, canvases/poplins, fabrics with minimum tension such as stretch fabrics and all high-density weaves. The business also exports to Europe, the United States of America, Asia, Africa and Australia. The firm caters to domestic and international markets.