Canadian Solar (Canadian Solar) Inventory Turnover

: 1.04 (As of Sep. 2023)

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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. Canadian Solar's Cost of Goods Sold for the three months ended in Sep. 2023 was $1,538 Mil. Canadian Solar's Average Total Inventories for the quarter that ended in Sep. 2023 was $1,482 Mil. Canadian Solar's Inventory Turnover for the quarter that ended in Sep. 2023 was 1.04.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Canadian Solar's Days Inventory for the three months ended in Sep. 2023 was 87.93.

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. Canadian Solar's Inventory-to-Revenue for the quarter that ended in Sep. 2023 was 0.80.

Canadian Solar Inventory Turnover Historical Data

The historical data trend for Canadian Solar'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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Canadian Solar Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Inventory Turnover

9.77

6.08

4.46

4.63

4.57

Canadian Solar Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Inventory Turnover																0.97	1.04	0.87	1.20	1.04

Canadian Solar Inventory Turnover Calculation

Canadian Solar's Inventory Turnover for the fiscal year that ended in Dec. 2022 is calculated as

	Inventory Turnover (A: Dec. 2022 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2022 )	/ (	(Total Inventories (A: Dec. 2021 )	+	Total Inventories (A: Dec. 2022 ))	/	count )
=	6205.474	/ (	(1192.374	+	1524.095)	/	2 )
=	6205.474	/	1358.2345
=	4.57

Canadian Solar's Inventory Turnover for the quarter that ended in Sep. 2023 is calculated as

	Inventory Turnover (Q: Sep. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2023 )	/ (	(Total Inventories (Q: Jun. 2023 )	+	Total Inventories (Q: Sep. 2023 ))	/	count )
=	1538.281	/ (	(1532.149	+	1432.372)	/	2 )
=	1538.281	/	1482.2605
=	1.04

Canadian Solar (NAS:CSIQ) 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.

Canadian Solar's Days Inventory for the three months ended in Sep. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2023 )	/	Cost of Goods Sold (Q: Sep. 2023 )	*	Days in Period
	=	1482.2605	/	1538.281	*	365 / 4
	=	87.93

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.

Canadian Solar's Inventory to Revenue for the quarter that ended in Sep. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	1482.2605	/	1846.285
	=	0.80

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.

Canadian Solar Inventory Turnover Related Terms

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Canadian Solar (Canadian Solar) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Canadian Solar Inc (NAS:CSIQ) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

CSIQ:Mexico L5A:Germany L5A:Germany

Address

545 Speedvale Avenue West, Guelph, ON, CAN, N1K 1E6

Website

https://www.canadiansolar.com

Canadian Solar Inc is a Canadian solar power company. It is an integrated provider of solar power products, services, and system solutions. The company engages in designing, developing and manufacturing solar ingots, wafers, cells, modules and other solar power products. It operates through two business segments CSI Solar and Global Energy segment. The CSI Solar segment design, develop and manufacture solar ingots, wafers, cells, modules and other solar power and battery storage products. Its Energy segment primarily comprises solar and battery storage project development and sale, O&M and asset management services for operational projects, sale of electricity, and investment in retained assets.