Martinrea International (TSX:MRE) Inventory Turnover : 2.04 (As of Mar. 2024)

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What is Martinrea International 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. Martinrea International's Cost of Goods Sold for the three months ended in Mar. 2024 was C$1,151 Mil. Martinrea International's Average Total Inventories for the quarter that ended in Mar. 2024 was C$563 Mil. Martinrea International's Inventory Turnover for the quarter that ended in Mar. 2024 was 2.04.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Martinrea International's Days Inventory for the three months ended in Mar. 2024 was 44.64.

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. Martinrea International's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.43.

Martinrea International Inventory Turnover Historical Data

The historical data trend for Martinrea International'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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Martinrea International Inventory Turnover Chart

Martinrea International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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7.48

6.76

6.35

6.68

7.56

Martinrea International 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															1.68	1.77	1.85	1.89	2.04

Martinrea International Inventory Turnover Calculation

Martinrea International'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 )
=	4664.606	/ (	(665.316	+	568.274)	/	2 )
=	4664.606	/	616.795
=	7.56

Martinrea International'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 )
=	1151.376	/ (	(568.274	+	558.119)	/	2 )
=	1151.376	/	563.1965
=	2.04

Martinrea International (TSX:MRE) 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.

Martinrea International'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
	=	563.1965	/	1151.376	*	365 / 4
	=	44.64

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.

Martinrea International'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 )
	=	563.1965	/	1323.913
	=	0.43

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.

Martinrea International Inventory Turnover Related Terms

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Martinrea International (TSX:MRE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Martinrea International Inc (TSX:MRE) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

MRETF:USA 03M:Germany

Address

3210 Langstaff Road, Vaughan, ON, CAN, L4K 5B2

Website

https://www.martinrea.com

Martinrea International Inc is a diversified and global automotive supplier engaged in the design, development and manufacturing of highly engineered, value-added Lightweight Structures and Propulsion Systems. Its products are used primarily in the automotive sector by the majority of vehicle manufacturers. Martinrea manufactures aluminum engine blocks, specialized products, suspensions, chassis modules and components, and fluid management systems for fuel, power steering and brake fluids. The company also provides metal forming and welding solutions. The largest end market for Martinrea's products in North America.

Executives

Ganesh Koduvayur Venkatasubramanian Kesavan Iyer	Senior Officer
Armando Pagliari	Senior Officer

Martinrea International (TSX:MRE) Headlines

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