Ester Industries (NSE:ESTER) Inventory Turnover : 1.34 (As of Mar. 2024)

View and export this data going back to 2011. Start your Free Trial

What is Ester Industries 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. Ester Industries's Cost of Goods Sold for the three months ended in Mar. 2024 was ₹1,940 Mil. Ester Industries's Average Total Inventories for the quarter that ended in Mar. 2024 was ₹1,446 Mil. Ester Industries's Inventory Turnover for the quarter that ended in Mar. 2024 was 1.34.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Ester Industries's Days Inventory for the three months ended in Mar. 2024 was 68.01.

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. Ester Industries's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.52.

Ester Industries Inventory Turnover Historical Data

The historical data trend for Ester Industries'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.

* Premium members only.

Ester Industries Inventory Turnover Chart

Ester Industries Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

Get a 7-Day Free Trial

6.24

5.06

3.97

3.80

4.76

Ester Industries 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															1.18	1.02	1.14	1.23	1.34

Ester Industries Inventory Turnover Calculation

Ester Industries'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 )
=	7548.395	/ (	(1722.301	+	1446.26)	/	2 )
=	7548.395	/	1584.2805
=	4.76

Ester Industries'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 )
=	1940.347	/ (	(0	+	1446.26)	/	1 )
=	1940.347	/	1446.26
=	1.34

Ester Industries (NSE:ESTER) 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.

Ester Industries'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
	=	1446.26	/	1940.347	*	365 / 4
	=	68.01

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.

Ester Industries'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 )
	=	1446.26	/	2767.332
	=	0.52

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.

Ester Industries Inventory Turnover Related Terms

Thank you for viewing the detailed overview of Ester Industries's Inventory Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.

Ester Industries (NSE:ESTER) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Ester Industries Ltd (NSE:ESTER) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

500136:India

Address

Plot No. 11, Block-A, Infocity-I, Sector 34, Gurgaon, HR, IND, 122001

Website

https://www.esterindustries.com

Ester Industries Ltd is engaged in the manufacturing of polyester films, specialty polymers, and engineering plastic compounds. It operates through three segments; Polyester chips and film; Speciality Polymers and Engineering Plastics. The company generates maximum revenue from the Polyester chips and film segment. The Polyester chips and film segment is used in primarily flexible packaging and other industrial applications. It serves food packaging; beverage packaging; home and personal care; industrial packaging; construction; automotive; electrical and electronics, carpet, and other industries. Geographically, it derives a majority of its revenue from India.

Ester Industries (NSE:ESTER) Headlines

No Headlines