Nexen Tire (XKRX:002350) Inventory Turnover : 0.78 (As of Mar. 2024)

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What is Nexen Tire 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. Nexen Tire's Cost of Goods Sold for the three months ended in Mar. 2024 was ₩500,648 Mil. Nexen Tire's Average Total Inventories for the quarter that ended in Mar. 2024 was ₩641,389 Mil. Nexen Tire's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.78.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Nexen Tire's Days Inventory for the three months ended in Mar. 2024 was 116.90.

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. Nexen Tire's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.95.

Nexen Tire Inventory Turnover Historical Data

The historical data trend for Nexen Tire'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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Nexen Tire Inventory Turnover Chart

Nexen Tire Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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4.08

3.44

3.89

3.78

3.04

Nexen Tire 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	0.76	0.72	0.78

Nexen Tire Inventory Turnover Calculation

Nexen Tire'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 )
=	1962430.087	/ (	(649173.371	+	640773.667)	/	2 )
=	1962430.087	/	644973.519
=	3.04

Nexen Tire'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 )
=	500648.138	/ (	(640773.667	+	642005.086)	/	2 )
=	500648.138	/	641389.3765
=	0.78

Nexen Tire (XKRX:002350) 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.

Nexen Tire'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
	=	641389.3765	/	500648.138	*	365 / 4
	=	116.90

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.

Nexen Tire'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 )
	=	641389.3765	/	678084.342
	=	0.95

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.

Nexen Tire Inventory Turnover Related Terms

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Nexen Tire (XKRX:002350) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Nexen Tire Corp (XKRX:002350) » Definitions » Inventory Turnover

Traded in Other Exchanges

002355:Korea

Address

355, Chungryeol-ro, Gyeongsangnam-do, Yangsan-si, KOR

Website

http://www.nexentire.com

Nexen Tire Corp manufactures, markets and exports tires. The firm has divided its business in the passenger car, SUV, Van and light truck, Global OE, Solid tire and Tube and Flap and all seasons divisions. The company has manufacturing facilities in Korea and China and has research and development facilities in the U.S., China, and Germany.

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