Novo Nordisk A/S (Novo Nordisk A/S) Inventory Turnover

: 0.33 (As of Dec. 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. Novo Nordisk A/S's Cost of Goods Sold for the three months ended in Dec. 2023 was $1,465 Mil. Novo Nordisk A/S's Average Total Inventories for the quarter that ended in Dec. 2023 was $4,440 Mil. Novo Nordisk A/S's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.33.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Novo Nordisk A/S's Days Inventory for the three months ended in Dec. 2023 was 276.55.

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. Novo Nordisk A/S's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.46.

Novo Nordisk A/S Inventory Turnover Historical Data

The historical data trend for Novo Nordisk A/S'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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Novo Nordisk A/S Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

1.17

1.21

1.20

1.26

1.29

Novo Nordisk A/S Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover																0.36	0.33	0.29	0.33	0.33

Novo Nordisk A/S Inventory Turnover Calculation

Novo Nordisk A/S'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 )
=	5232.779	/ (	(3472.64	+	4654.269)	/	2 )
=	5232.779	/	4063.4545
=	1.29

Novo Nordisk A/S'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 )
=	1465.149	/ (	(4226.57	+	4654.269)	/	2 )
=	1465.149	/	4440.4195
=	0.33

Novo Nordisk A/S (NYSE:NVO) 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.

Novo Nordisk A/S'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
	=	4440.4195	/	1465.149	*	365 / 4
	=	276.55

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.

Novo Nordisk A/S'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 )
	=	4440.4195	/	9636.42
	=	0.46

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.

Novo Nordisk A/S Inventory Turnover Related Terms

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Novo Nordisk A/S (Novo Nordisk A/S) Business Description

Industry

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Traded in Other Exchanges

NONOF:USA NOVOB:Mexico NVO:Mexico NOVOBc:UK 0QIU:UK NOVO B:Denmark NOV:Germany NOV:Germany NOVA:Germany NOV:Germany NOV:Germany NOVA:Germany N1VO34:Brazil NNO2:Austria

Address

Novo Alle 1, Bagsvaerd, DNK, DK-2880

Website

https://www.novonordisk.com

With roughly one third of the global branded diabetes treatment market, Novo Nordisk is the leading provider of diabetes-care products in the world. Based in Denmark, the company manufactures and markets a variety of human and modern insulins, injectable diabetes treatments such as GLP-1 therapy, oral antidiabetic agents, and obesity treatments. Novo also has a biopharmaceutical segment (constituting roughly 10% of revenue) that specializes in protein therapies for hemophilia and other disorders.