SORL Auto Parts (SORL Auto Parts) Inventory Turnover : 0.43 (As of Sep. 2019)

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What is SORL Auto Parts 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. SORL Auto Parts's Cost of Goods Sold for the three months ended in Sep. 2019 was $81.3 Mil. SORL Auto Parts's Average Total Inventories for the quarter that ended in Sep. 2019 was $187.3 Mil. SORL Auto Parts's Inventory Turnover for the quarter that ended in Sep. 2019 was 0.43.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. SORL Auto Parts's Days Inventory for the three months ended in Sep. 2019 was 210.29.

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. SORL Auto Parts's Inventory-to-Revenue for the quarter that ended in Sep. 2019 was 1.67.

SORL Auto Parts Inventory Turnover Historical Data

The historical data trend for SORL Auto Parts'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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SORL Auto Parts Inventory Turnover Chart

SORL Auto Parts Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Inventory Turnover

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2.13

2.02

2.92

3.18

2.17

SORL Auto Parts Quarterly Data
	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19
Inventory Turnover	Get a 7-Day Free Trial															0.56	0.50	0.51	0.56	0.43

SORL Auto Parts Inventory Turnover Calculation

SORL Auto Parts's Inventory Turnover for the fiscal year that ended in Dec. 2018 is calculated as

	Inventory Turnover (A: Dec. 2018 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2018 )	/ (	(Total Inventories (A: Dec. 2017 )	+	Total Inventories (A: Dec. 2018 ))	/	count )
=	345.534	/ (	(114.301	+	204.285)	/	2 )
=	345.534	/	159.293
=	2.17

SORL Auto Parts's Inventory Turnover for the quarter that ended in Sep. 2019 is calculated as

	Inventory Turnover (Q: Sep. 2019 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2019 )	/ (	(Total Inventories (Q: Jun. 2019 )	+	Total Inventories (Q: Sep. 2019 ))	/	count )
=	81.294	/ (	(183.519	+	191.179)	/	2 )
=	81.294	/	187.349
=	0.43

SORL Auto Parts (NAS:SORL) 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.

SORL Auto Parts's Days Inventory for the three months ended in Sep. 2019 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2019 )	/	Cost of Goods Sold (Q: Sep. 2019 )	*	Days in Period
	=	187.349	/	81.294	*	365 / 4
	=	210.29

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.

SORL Auto Parts's Inventory to Revenue for the quarter that ended in Sep. 2019 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2019 )	/	Revenue (Q: Sep. 2019 )
	=	187.349	/	112.227
	=	1.67

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.

SORL Auto Parts Inventory Turnover Related Terms

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SORL Auto Parts (SORL Auto Parts) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » SORL Auto Parts Inc (NAS:SORL) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

NO. 2666 KaiFaqu Avenue, Ruili Industry Area, Zhejiang Province, Ruian City, CHN, 325200

Website

http://www.sorl.cn

SORL Auto Parts Inc develops, manufactures and distributes automotive brake systems and other key safety-related auto parts to automotive original equipment manufacturers, and the related aftermarket both in China and internationally. The company is organized into two principal operating division: Commercial Vehicles Brake Systems and Passenger Vehicles Brake Systems. Its key products are air brake system, tubes and fittings, ABS and diagnosis, power steering pumps, electrical and railway parts, and new energy parts. The company's products are principally used in different types of commercial vehicles, such as trucks and buses. Most of the firm's revenue gets generated through Commercial Vehicles Brake Systems segment.

Executives

Kevin R Keating

director, officer: President

190 LAKEVIEW WAY, VERO BEACH FL 32963