2 Cheap Cars Group (NZSE:2CC) Inventory Turnover : 2.87 (As of Mar. 2024)

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What is 2 Cheap Cars Group 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. 2 Cheap Cars Group's Cost of Goods Sold for the six months ended in Mar. 2024 was NZ$34.53 Mil. 2 Cheap Cars Group's Average Total Inventories for the quarter that ended in Mar. 2024 was NZ$12.03 Mil. 2 Cheap Cars Group's Inventory Turnover for the quarter that ended in Mar. 2024 was 2.87.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. 2 Cheap Cars Group's Days Inventory for the six months ended in Mar. 2024 was 63.60.

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. 2 Cheap Cars Group's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.27.

2 Cheap Cars Group Inventory Turnover Historical Data

The historical data trend for 2 Cheap Cars Group'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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2 Cheap Cars Group Inventory Turnover Chart

2 Cheap Cars Group Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

4.35

4.15

6.35

5.94

2 Cheap Cars Group Semi-Annual Data
	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24
Inventory Turnover	Get a 7-Day Free Trial			2.08	2.55	3.34	3.40	2.87

2 Cheap Cars Group Inventory Turnover Calculation

2 Cheap Cars Group'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 )
=	66.118	/ (	(8.377	+	13.873)	/	2 )
=	66.118	/	11.125
=	5.94

2 Cheap Cars Group'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: Sep. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	34.525	/ (	(10.191	+	13.873)	/	2 )
=	34.525	/	12.032
=	2.87

2 Cheap Cars Group (NZSE:2CC) 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.

2 Cheap Cars Group's Days Inventory for the six 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
	=	12.032	/	34.525	*	365 / 2
	=	63.60

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.

2 Cheap Cars Group'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 )
	=	12.032	/	44.378
	=	0.27

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.

2 Cheap Cars Group Inventory Turnover Related Terms

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2 Cheap Cars Group (NZSE:2CC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » 2 Cheap Cars Group Ltd (NZSE:2CC) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

102 Mays Road, Onehunga, Auckland, NTL, NZL, 1061

Website

https://www.2cheapcars.co.nz

2 Cheap Cars Group Ltd is an integrated automotive group operating throughout New Zealand via two divisions: Automotive Retail and Finance. The 2 Cheap Cars Group draws revenue from the two divisions: automotive retail division, revenue is primarily from the sale of vehicles and from agent commissions relating to third-party finance and insurance products. NZ Motor Finance (NZMF) generates finance income from lending to customers who are financing vehicles, and from selling guaranteed asset protection insurance (GAP) and payment protection insurance (PPI) products.

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