Air Liquide (XPAR:AI) Inventory Turnover

: 2.67 (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. Air Liquide's Cost of Goods Sold for the six months ended in Dec. 2023 was €5,410 Mil. Air Liquide's Average Total Inventories for the quarter that ended in Dec. 2023 was €2,025 Mil. Air Liquide's Inventory Turnover for the quarter that ended in Dec. 2023 was 2.67.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Air Liquide's Days Inventory for the six months ended in Dec. 2023 was 68.31.

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. Air Liquide's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.15.

Air Liquide Inventory Turnover Historical Data

The historical data trend for Air Liquide'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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Air Liquide Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

5.45

4.90

6.28

7.79

5.59

Air Liquide Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Inventory Turnover																3.46	3.82	3.85	2.88	2.67

Air Liquide Inventory Turnover Calculation

Air Liquide'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 )
=	11146.8	/ (	(1961	+	2027.6)	/	2 )
=	11146.8	/	1994.3
=	5.59

Air Liquide'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: Jun. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	5410	/ (	(2022.6	+	2027.6)	/	2 )
=	5410	/	2025.1
=	2.67

Air Liquide (XPAR:AI) 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.

Air Liquide's Days Inventory for the six 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
	=	2025.1	/	5410	*	365 / 2
	=	68.31

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.

Air Liquide'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 )
	=	2025.1	/	13627.3
	=	0.15

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.

Air Liquide Inventory Turnover Related Terms

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Air Liquide (XPAR:AI) Business Description

Industry

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Address

75, Quai d'Orsay, Paris, FRA, 75007

Website

https://www.airliquide.com

Founded in 1902, Air Liquide is one of the leading industrial gas companies in the world, serving over 3.8 million customers in 78 countries. The company generated approximately EUR 29.9 billion of revenue in 2022, serving a wide range of industries, including chemicals, energy, healthcare, food and beverage, and electronics. The healthcare division serves around 1.8 million patients and 15,000 hospitals and clinics annually. Air Liquide employs approximately 65,000 people.