Larsen & Toubro (LSE:LTOD) Inventory Turnover : 6.96 (As of Mar. 2024)

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What is Larsen & Toubro 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. Larsen & Toubro's Cost of Goods Sold for the three months ended in Mar. 2024 was $5,546 Mil. Larsen & Toubro's Average Total Inventories for the quarter that ended in Mar. 2024 was $797 Mil. Larsen & Toubro's Inventory Turnover for the quarter that ended in Mar. 2024 was 6.96.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Larsen & Toubro's Days Inventory for the three months ended in Mar. 2024 was 13.12.

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. Larsen & Toubro's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.10.

Larsen & Toubro Inventory Turnover Historical Data

The historical data trend for Larsen & Toubro'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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Larsen & Toubro Inventory Turnover Chart

Larsen & Toubro Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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15.42

15.17

16.60

17.61

21.62

Larsen & Toubro 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															5.78	4.51	4.90	5.52	6.96

Larsen & Toubro Inventory Turnover Calculation

Larsen & Toubro'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 )
=	17589.299	/ (	(830.08	+	797.408)	/	2 )
=	17589.299	/	813.744
=	21.62

Larsen & Toubro'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 )
=	5546.196	/ (	(0	+	797.408)	/	1 )
=	5546.196	/	797.408
=	6.96

Larsen & Toubro (LSE:LTOD) 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.

Larsen & Toubro'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
	=	797.408	/	5546.196	*	365 / 4
	=	13.12

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.

Larsen & Toubro'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 )
	=	797.408	/	8079.685
	=	0.10

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.

Larsen & Toubro Inventory Turnover Related Terms

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Larsen & Toubro (LSE:LTOD) Business Description

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GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Larsen & Toubro Ltd (LSE:LTOD) » Definitions » Inventory Turnover

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LTOUF:USA LT:India 500510:India LTODl:UK LTO:Germany LTO:Germany

Address

Norottarn Morarjee Marg , L&T House, Ballard Estate, P. O. Box: 278, Mumbai, MH, IND, 400 001

Website

https://www.larsentoubro.com

Larsen & Toubro Ltd is a technology, engineering, manufacturing, and financial services conglomerate. It enters contracts to construct various facilities, develop solutions for offshore and onshore hydrocarbon projects, serve power plants, build ships, and perform other engineering projects. Its integrated capabilities help customers throughout the entire value chain, from design to delivering a project. The company has several operating segments: Infrastructure segment; Energy Projects segment, Hi-Tech Manufacturing segment and Other segments. Larsen & Toubro can supply customized solutions or standardized components for reproduction, and its service network boosts aftermarket sales.

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