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Ajinomoto Co (Ajinomoto Co) Inventory Turnover : 0.82 (As of Mar. 2024)


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What is Ajinomoto 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. Ajinomoto Co's Cost of Goods Sold for the three months ended in Mar. 2024 was $1,632 Mil. Ajinomoto Co's Average Total Inventories for the quarter that ended in Mar. 2024 was $2,002 Mil. Ajinomoto Co's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.82.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Ajinomoto Co's Days Inventory for the three months ended in Mar. 2024 was 111.94.

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. Ajinomoto Co's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.81.

Ajinomoto Co Inventory Turnover Historical Data

The historical data trend for Ajinomoto 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.

* Premium members only.

Ajinomoto Co Inventory Turnover Chart

Ajinomoto Co Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.89 3.61 3.40 3.44 3.15

Ajinomoto 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.84 0.74 0.73 0.79 0.82

Ajinomoto Co Inventory Turnover Calculation

Ajinomoto Co's Inventory Turnover for the fiscal year that ended in Mar. 2024 is calculated as

Inventory Turnover (A: Mar. 2024 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Mar. 2024 ) / ((Total Inventories (A: Mar. 2023 ) + Total Inventories (A: Mar. 2024 )) / count )
=6192.709 / ((2018.654 + 1916.464) / 2 )
=6192.709 / 1967.559
=3.15

Ajinomoto 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 )
=1632.374 / ((2088.504 + 1916.464) / 2 )
=1632.374 / 2002.484
=0.82

* 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.

Ajinomoto Co  (OTCPK:AJINY) 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.

Ajinomoto 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
=2002.484/1632.374*365 / 4
=111.94

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.

Ajinomoto 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 )
=2002.484 / 2480.239
=0.81

* 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.

Ajinomoto Co Inventory Turnover Related Terms

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Ajinomoto Co (Ajinomoto Co) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Ajinomoto Co Inc (OTCPK:AJINY) » Definitions » Inventory Turnover
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Traded in Other Exchanges
AJINF:USA 2802:Japan AJI:Germany
Address
15-1, Kyobashi 1-chome, Chuo-ku, Tokyo, JPN, 104-8315
Website
http://www.ajinomoto.co.jp
Ajinomoto is Japan's leading food company specializing in amino acids and seasonings derived from amino acid fermentation technologies. It also produces processed foods including dry soup mixes, frozen foods, and beverage products. Apart from the consumer business, it is a key supplier of MSG and nucleotides to global food manufacturers including Nestle. The food business represents nearly three fourths of group sales and 80%-plus of profits with nearly two thirds generated overseas. Healthcare and function materials (mainly Ajinomoto build-up film, or ABF), the key growth drivers through 2030, make up the balance of its business portfolio. The nonfood businesses are expected to contribute half of the group profits by 2030, boosted by ABF and CDMO growth.