NewMarket (NewMarket) Inventory Turnover : 0.97 (As of Dec. 2023)

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What is NewMarket 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. NewMarket's Cost of Goods Sold for the three months ended in Dec. 2023 was $466 Mil. NewMarket's Average Total Inventories for the quarter that ended in Dec. 2023 was $480 Mil. NewMarket's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.97.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. NewMarket's Days Inventory for the three months ended in Dec. 2023 was 93.91.

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. NewMarket's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.75.

NewMarket Inventory Turnover Historical Data

The historical data trend for NewMarket'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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NewMarket Inventory Turnover Chart

NewMarket Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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4.09

3.69

4.02

3.76

3.54

NewMarket 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															0.82	0.84	0.89	0.89	0.97

NewMarket Inventory Turnover Calculation

NewMarket'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 )
=	1925.906	/ (	(631.383	+	456.234)	/	2 )
=	1925.906	/	543.8085
=	3.54

NewMarket'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 )
=	466.224	/ (	(503.411	+	456.234)	/	2 )
=	466.224	/	479.8225
=	0.97

NewMarket (NYSE:NEU) 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.

NewMarket'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
	=	479.8225	/	466.224	*	365 / 4
	=	93.91

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.

NewMarket'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 )
	=	479.8225	/	643.35
	=	0.75

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.

NewMarket Inventory Turnover Related Terms

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NewMarket (NewMarket) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » NewMarket Corp (NYSE:NEU) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

UG9:Germany

Address

330 South Fourth Street, Richmond, VA, USA, 23219-4350

Website

https://www.newmarket.com

NewMarket Corp is a holding company that, through its subsidiaries, manufactures and sells petroleum additives. Petroleum additives are used in lubricating oils and fuels to enhance their performance in machinery, vehicles, and other equipment. It comprises two broad product applications. Lubricant additives are formulated chemical solutions that, when blended with base fluids, improve the efficiency, durability, performance, and functionality of mineral oils, synthetic oils, and biodegradable fluids. Fuel additives are chemical components that help oil refiners meet fuel specifications or formulated packages that improve the performance of gasoline, diesel, biofuels, and other fuels. More revenue comes from the United States than any other geographic region.

Executives

Lowell Simmons Ukrop	director	330 SOUTH 4TH ST, RICHMOND VA 23219
James E Rogers	director	1021 EAST CARY STREET, PO BOX 2350, RICHMOND VA 23218-2350
Gail Ridgeway	officer: Controller	330 SOUTH 4TH STREET, RICHMOND VA 23219
Ting Xu	director	330 S 4TH ST, RICHMOND VA 23219
Jewett Bryce Dickinson Iii	officer: VP and General Counsel	330 SOUTH 4TH STREET, RICHMOND VA 23219
Hazelgrove Bruce R Iii	officer: VP - Corporate Resources	330 SOUTH FOURTH STREET, RICHMOND VA 23219
Thomas E Gottwald	director, officer: President & CEO	330 SOUTH FOURTH STREET, RICHMOND VA 23219
Regina A Harm	officer: President Afton Chemical Corp	330 SOUTH FOURTH STREET, RICHMOND VA 23219
Cameron D. Warner	officer: Treasurer	330 SOUTH FOURTH STREET, RICHMOND VA 23219
Robert A. Shama	officer: President Afton Chemical Corp	330 SOUTH FOURTH STREET, RICHMOND VA 23219
Harris H Hiter Iii	director	330 SOUTH FOURTH STREET, RICHMOND VA 23219-4350
Brian D Paliotti	officer: Vice President & CFO	330 SOUTH 4TH STREET, RICHMOND VA 23219
David A Fiorenza	officer: Vice President and Treasurer
William J Skrobacz	officer: Controller	330 SOUTH FOURTH STREET, RICHMOND VA 23219
Patrick D Hanley	director	1000 SEMMES AVE, RICHMOND VA 23224