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Daiwa Cycle Co (TSE:5888) Inventory Turnover : 0.72 (As of Jan. 2024)


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What is Daiwa Cycle 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. Daiwa Cycle Co's Cost of Goods Sold for the three months ended in Jan. 2024 was 円1,968 Mil. Daiwa Cycle Co's Average Total Inventories for the quarter that ended in Jan. 2024 was 円2,742 Mil. Daiwa Cycle Co's Inventory Turnover for the quarter that ended in Jan. 2024 was 0.72.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Daiwa Cycle Co's Days Inventory for the three months ended in Jan. 2024 was 127.15.

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. Daiwa Cycle Co's Inventory-to-Revenue for the quarter that ended in Jan. 2024 was 0.78.

Daiwa Cycle Co Inventory Turnover Historical Data

The historical data trend for Daiwa Cycle 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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Daiwa Cycle Co Inventory Turnover Chart

Daiwa Cycle Co Annual Data
Trend Jan22 Jan23 Jan24
Inventory Turnover
3.37 3.22 3.15

Daiwa Cycle Co Quarterly Data
Jan22 Jan23 Jul23 Oct23 Jan24
Inventory Turnover - - - 0.80 0.72

Daiwa Cycle Co Inventory Turnover Calculation

Daiwa Cycle Co's Inventory Turnover for the fiscal year that ended in Jan. 2024 is calculated as

Inventory Turnover (A: Jan. 2024 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Jan. 2024 ) / ((Total Inventories (A: Jan. 2023 ) + Total Inventories (A: Jan. 2024 )) / count )
=8608.128 / ((2632.522 + 2834.903) / 2 )
=8608.128 / 2733.7125
=3.15

Daiwa Cycle Co's Inventory Turnover for the quarter that ended in Jan. 2024 is calculated as

Inventory Turnover (Q: Jan. 2024 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Jan. 2024 ) / ((Total Inventories (Q: Oct. 2023 ) + Total Inventories (Q: Jan. 2024 )) / count )
=1968.149 / ((2649.917 + 2834.903) / 2 )
=1968.149 / 2742.41
=0.72

* 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.

Daiwa Cycle Co  (TSE:5888) 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.

Daiwa Cycle Co's Days Inventory for the three months ended in Jan. 2024 is calculated as:

Days Inventory =Average Total Inventories (Q: Jan. 2024 )/Cost of Goods Sold (Q: Jan. 2024 )*Days in Period
=2742.41/1968.149*365 / 4
=127.15

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.

Daiwa Cycle Co's Inventory to Revenue for the quarter that ended in Jan. 2024 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Jan. 2024 ) / Revenue (Q: Jan. 2024 )
=2742.41 / 3534.162
=0.78

* 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.

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.

Daiwa Cycle Co Inventory Turnover Related Terms

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Daiwa Cycle Co (TSE:5888) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Daiwa Cycle Co Ltd (TSE:5888) » Definitions » Inventory Turnover
Comparable Companies
Traded in Other Exchanges
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Address
1-12-38 Esaka-cho, 5th floor, Esaka Soliton Building, Suita-shi, Osaka, JPN, 564-0063
Website
https://www.daiwa-cycle.co.jp
Daiwa Cycle Co Ltd is engaged in the Sales of bicycles, bicycle parts and accessories, maintenance and repair services for bicycles.

Daiwa Cycle Co (TSE:5888) Headlines

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