Sandoz Group AG (Sandoz Group AG) Inventory Turnover : 2.25 (As of Dec. 2023)

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What is Sandoz Group AG 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. Sandoz Group AG's Cost of Goods Sold for the three months ended in Dec. 2023 was $5,415 Mil. Sandoz Group AG's Average Total Inventories for the quarter that ended in Dec. 2023 was $2,412 Mil. Sandoz Group AG's Inventory Turnover for the quarter that ended in Dec. 2023 was 2.25.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Sandoz Group AG's Days Inventory for the three months ended in Dec. 2023 was 40.65.

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. Sandoz Group AG's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.24.

Sandoz Group AG Inventory Turnover Historical Data

The historical data trend for Sandoz Group AG'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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Sandoz Group AG Inventory Turnover Chart

Sandoz Group AG Annual Data

Trend

Dec22

Dec23

Inventory Turnover

2.32

2.25

Sandoz Group AG Quarterly Data
	Dec22	Dec23
Inventory Turnover	2.32	2.25

Sandoz Group AG Inventory Turnover Calculation

Sandoz Group AG's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	5415	/ (	(2124	+	2700)	/	2 )
=	5415	/	2412
=	2.25

Sandoz Group AG's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Dec. 2022 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	5415	/ (	(2124	+	2700)	/	2 )
=	5415	/	2412
=	2.25

Sandoz Group AG (OTCPK:SDZNY) 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.

Sandoz Group AG's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	2412	/	5415	*	365 / 4
	=	40.65

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.

Sandoz Group AG's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	2412	/	9979
	=	0.24

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.

Sandoz Group AG Inventory Turnover Related Terms

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Sandoz Group AG (Sandoz Group AG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Sandoz Group AG (OTCPK:SDZNY) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

SDZXF:USA SDZz:UK D8Y0:Germany SDZ:Switzerland

Address

Forum 1, Novartis Campus, Basel, CHE, CH-4056

Website

https://www.sandoz.com

Sandoz is one of the largest generic pharmaceutical manufacturers in the world, generating over $9 billion annually from off-patent drugs. Once part of Novartis, Sandoz spun off and went public in October 2023. Generics, including small molecules and complex injectables, make up roughly 75% of Sandoz's total sales, and the firm has a significant presence in Europe, the United States, and other key international markets. Sandoz generates its remaining sales from biosimilars and is among leaders in the space. Sandoz launched Europe's first biosimilar, Omnitrope, in 2006 as well as U.S.'s first biosimilar, Zarxio, in 2015. It currently has eight commercialized biosimilars in a number of markets and has over 20 assets in pipeline.

Sandoz Group AG (Sandoz Group AG) Headlines

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