Sandvik AB (Sandvik AB) Inventory Turnover : 0.51 (As of Mar. 2024)

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What is Sandvik 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. Sandvik AB's Cost of Goods Sold for the three months ended in Mar. 2024 was $1,732 Mil. Sandvik AB's Average Total Inventories for the quarter that ended in Mar. 2024 was $3,402 Mil. Sandvik AB's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.51.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Sandvik AB's Days Inventory for the three months ended in Mar. 2024 was 179.20.

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. Sandvik AB's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 1.22.

Sandvik AB Inventory Turnover Historical Data

The historical data trend for Sandvik 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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Sandvik AB Inventory Turnover Chart

Sandvik AB Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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2.48

2.52

1.84

1.94

2.16

Sandvik AB 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															0.50	0.50	0.47	0.54	0.51

Sandvik AB Inventory Turnover Calculation

Sandvik 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 )
=	7258.618	/ (	(3374.35	+	3343.96)	/	2 )
=	7258.618	/	3359.155
=	2.16

Sandvik AB'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 )
=	1732.252	/ (	(3343.96	+	3459.895)	/	2 )
=	1732.252	/	3401.9275
=	0.51

Sandvik AB (OTCPK:SDVKY) 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.

Sandvik AB'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
	=	3401.9275	/	1732.252	*	365 / 4
	=	179.20

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.

Sandvik AB'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 )
	=	3401.9275	/	2785.627
	=	1.22

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.

Sandvik AB Inventory Turnover Related Terms

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Sandvik AB (Sandvik AB) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

SDVKF:USA SAND:Sweden SAND:Mexico SANDs:UK 0HC0:UK SVKB:Germany

Address

Kungsbron 1, Section G, Floor 6, Stockholm, SWE, 111 22

Website

https://www.sandvik.com

Sandvik is a manufacturer of specialized tools and mining equipment used predominantly by global mining, engineering, and automotive customers. The company's core operations are in metal cutting and mining equipment. The company has a well-documented history, having been founded in 1862 and listed on the Nordic Exchange in Stockholm in 1901.Europe is the largest contributor to group sales at 27%, followed by North America 25%, Asia 19%, Australia 12%, Africa/Middle East 11%, and South America 6%.