Hexagon AB (Hexagon AB) Inventory Turnover : 0.78 (As of Dec. 2023)

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What is Hexagon AB 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. Hexagon AB's Cost of Goods Sold for the three months ended in Dec. 2023 was $525 Mil. Hexagon AB's Average Total Inventories for the quarter that ended in Dec. 2023 was $672 Mil. Hexagon AB's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.78.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Hexagon AB's Days Inventory for the three months ended in Dec. 2023 was 116.80.

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. Hexagon AB's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.43.

Hexagon AB Inventory Turnover Historical Data

The historical data trend for Hexagon AB'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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Hexagon AB Inventory Turnover Chart

Hexagon AB Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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3.29

3.73

3.60

3.31

3.13

Hexagon AB Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															0.83	0.72	0.78	0.82	0.78

Hexagon AB Inventory Turnover Calculation

Hexagon AB'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 )
=	2063.25	/ (	(632.945	+	684.515)	/	2 )
=	2063.25	/	658.73
=	3.13

Hexagon AB's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	524.755	/ (	(658.805	+	684.515)	/	2 )
=	524.755	/	671.66
=	0.78

Hexagon AB (OTCPK:HXGBY) 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.

Hexagon AB's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	671.66	/	524.755	*	365 / 4
	=	116.80

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.

Hexagon AB's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	671.66	/	1565.213
	=	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.

Hexagon AB Inventory Turnover Related Terms

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Hexagon AB (Hexagon AB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Hexagon AB (OTCPK:HXGBY) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

HXGBF:USA HEXA B:Sweden HEXABs:UK HXG:Germany

Address

Lilla Bantorget 15, Stockholm, SWE, SE-111 23

Website

https://www.hexagon.com

Hexagon AB provides information technology for industrial applications. It offers solutions in two segments: geospatial enterprise solutions and industrial enterprise solutions. Each segment contributes roughly half of the firm's overall revenue. Hexagon's geospatial solutions are used for infrastructure, mining, agriculture, and public safety. The industrial enterprise solutions are used to measure and inspect the quality of complex parts used in manufacturing processes. Hexagon's largest geographic markets are Americas and EMEA, with each market contributing more than a fourth of the firm's overall revenue.