Advantech Co (TPE:2395) Inventory Turnover : 0.86 (As of Mar. 2024)

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What is Advantech Co 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. Advantech Co's Cost of Goods Sold for the three months ended in Mar. 2024 was NT$8,332 Mil. Advantech Co's Average Total Inventories for the quarter that ended in Mar. 2024 was NT$9,704 Mil. Advantech Co's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.86.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Advantech Co's Days Inventory for the three months ended in Mar. 2024 was 106.28.

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. Advantech Co's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.70.

Advantech Co Inventory Turnover Historical Data

The historical data trend for Advantech Co'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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Advantech Co Inventory Turnover Chart

Advantech Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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4.31

3.94

3.59

3.21

3.23

Advantech Co 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															0.77	0.80	0.80	0.86	0.86

Advantech Co Inventory Turnover Calculation

Advantech Co'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 )
=	38405.883	/ (	(14007.765	+	9803.796)	/	2 )
=	38405.883	/	11905.7805
=	3.23

Advantech Co'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 )
=	8331.592	/ (	(9803.796	+	9603.88)	/	2 )
=	8331.592	/	9703.838
=	0.86

Advantech Co (TPE:2395) 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.

Advantech Co'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
	=	9703.838	/	8331.592	*	365 / 4
	=	106.28

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.

Advantech Co'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 )
	=	9703.838	/	13879.27
	=	0.70

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.

Advantech Co Inventory Turnover Related Terms

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Advantech Co (TPE:2395) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Advantech Co Ltd (TPE:2395) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 1, Alley 20, Lane 26, Rueiguang Road, Neihu District, Taipei, TWN, 114519

Website

https://www.advantech.com

Founded in 1981, Advantech is the world's largest industrial PC, or IPC, supplier, offering single-board computers, fanless IPCs, digital posts and more. The company reports three segments: embedded PCs, industry PC and automation solutions, and service and others. They contributed 50%, 39% and 11% revenue in 2022, respectively. Leveraging its presence in 27 countries, Advantech is expanding into Internet of Things verticals like smart retail, medical, transportation, industrial automation and energy by investing in Internet of Things solution partners and its proprietary WISE-PaaS platform. The headquarters is in Taipei, Taiwan. The company maintains most manufacturing facilities in Taiwan and Kunshan, China; and has 14 service centers globally.

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