Vital Chemtech (NSE:VITAL) Inventory Turnover : 3.74 (As of Sep. 2023)

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What is Vital Chemtech 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. Vital Chemtech's Cost of Goods Sold for the six months ended in Sep. 2023 was ₹413 Mil. Vital Chemtech's Average Total Inventories for the quarter that ended in Sep. 2023 was ₹111 Mil. Vital Chemtech's Inventory Turnover for the quarter that ended in Sep. 2023 was 3.74.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Vital Chemtech's Days Inventory for the six months ended in Sep. 2023 was 48.84.

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. Vital Chemtech's Inventory-to-Revenue for the quarter that ended in Sep. 2023 was 0.22.

Vital Chemtech Inventory Turnover Historical Data

The historical data trend for Vital Chemtech'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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Vital Chemtech Inventory Turnover Chart

Vital Chemtech Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Inventory Turnover

21.68

18.72

7.53

7.90

Vital Chemtech Semi-Annual Data
	Mar20	Mar21	Mar22	Sep22	Mar23	Sep23
Inventory Turnover	Get a 7-Day Free Trial			-	-	4.54	3.55	3.74

Vital Chemtech Inventory Turnover Calculation

Vital Chemtech's Inventory Turnover for the fiscal year that ended in Mar. 2023 is calculated as

	Inventory Turnover (A: Mar. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2023 )	/ (	(Total Inventories (A: Mar. 2022 )	+	Total Inventories (A: Mar. 2023 ))	/	count )
=	889.51	/ (	(90.547	+	134.663)	/	2 )
=	889.51	/	112.605
=	7.90

Vital Chemtech's Inventory Turnover for the quarter that ended in Sep. 2023 is calculated as

	Inventory Turnover (Q: Sep. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2023 )	/ (	(Total Inventories (Q: Mar. 2023 )	+	Total Inventories (Q: Sep. 2023 ))	/	count )
=	412.9	/ (	(134.663	+	86.349)	/	2 )
=	412.9	/	110.506
=	3.74

Vital Chemtech (NSE:VITAL) 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.

Vital Chemtech's Days Inventory for the six months ended in Sep. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2023 )	/	Cost of Goods Sold (Q: Sep. 2023 )	*	Days in Period
	=	110.506	/	412.9	*	365 / 2
	=	48.84

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.

Vital Chemtech's Inventory to Revenue for the quarter that ended in Sep. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	110.506	/	497.684
	=	0.22

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.

Vital Chemtech Inventory Turnover Related Terms

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Vital Chemtech (NSE:VITAL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Vital Chemtech Ltd (NSE:VITAL) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

S. G. Highway, Opposite Karnavati Club, B-406, Mondeal Heights, Ahmedabad, GJ, IND, 380015

Website

https://www.vitalgroup.co.in

Vital Chemtech Ltd is engaged in the business of manufacturing, producing, refining, processing, formulating, mixing, enriching, mining, importing, exporting, acquiring, inventing, buying, selling, exchanging, distributing, and otherwise trading and dealing in all kinds of mixtures, formlations, intermediates, derivatives, compounds, phosphorous based chemicals, fine chemicals, heavy chemicals, valence, inorganic and organic chemicals, source materials, intermediates, ingredients, mixtures, derivatives and compounds. The company's Products include Phosphorus Derivatives, Industrial Chemicals, Specialty Chemicals & Intermediates, Organophosphates, Polymers & Dispersants, and Wellness Products.

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