Ali Alghanim Sons Automotive Co KSC (KUW:ALG) Days Inventory : 128.71 (As of Mar. 2024)

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What is Ali Alghanim Sons Automotive Co KSC Days Inventory?

Days Inventory is also known as Days Sales of Inventory (DSI). Ali Alghanim Sons Automotive Co KSC's Average Total Inventories for the three months ended in Mar. 2024 was KWD68.7 Mil. Ali Alghanim Sons Automotive Co KSC's Cost of Goods Sold for the three months ended in Mar. 2024 was KWD48.7 Mil. Hence, Ali Alghanim Sons Automotive Co KSC's Days Inventory for the three months ended in Mar. 2024 was 128.71.

The historical rank and industry rank for Ali Alghanim Sons Automotive Co KSC's Days Inventory or its related term are showing as below:

KUW:ALG' s Days Inventory Range Over the Past 10 Years
Min: 65.93 Med: 96.57 Max: 114.77
Current: 114.77

During the past 3 years, Ali Alghanim Sons Automotive Co KSC's highest Days Inventory was 114.77. The lowest was 65.93. And the median was 96.57.

KUW:ALG's Days Inventory is ranked worse than
71.12% of 1257 companies
in the Vehicles & Parts industry
Industry Median: 80.93 vs KUW:ALG: 114.77

Ali Alghanim Sons Automotive Co KSC's Days Inventory increased from Mar. 2023 (96.46) to Mar. 2024 (128.71). It might indicate that Ali Alghanim Sons Automotive Co KSC's sales slowed down.

Warning Sign:

If a company builds up inventory, it may mean it is having difficulties selling its goods.

Inventory Turnover measures how fast the company turns over its inventory within a year. Ali Alghanim Sons Automotive Co KSC's Inventory Turnover for the three months ended in Mar. 2024 was 0.71.

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. Ali Alghanim Sons Automotive Co KSC's Inventory-to-Revenue for the three months ended in Mar. 2024 was 1.07.

Ali Alghanim Sons Automotive Co KSC Days Inventory Historical Data

The historical data trend for Ali Alghanim Sons Automotive Co KSC's Days Inventory 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.

* Premium members only.

Ali Alghanim Sons Automotive Co KSC Days Inventory Chart

Ali Alghanim Sons Automotive Co KSC Annual Data

Trend

Dec21

Dec22

Dec23

Days Inventory

65.93

96.57

106.21

Ali Alghanim Sons Automotive Co KSC Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Days Inventory	Get a 7-Day Free Trial							96.46	104.51	112.53	115.78	128.71

Competitive Comparison of Ali Alghanim Sons Automotive Co KSC's Days Inventory

For the Auto & Truck Dealerships subindustry, Ali Alghanim Sons Automotive Co KSC's Days Inventory, along with its competitors' market caps and Days Inventory data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Ali Alghanim Sons Automotive Co KSC's Days Inventory Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Ali Alghanim Sons Automotive Co KSC's Days Inventory distribution charts can be found below:

* The bar in red indicates where Ali Alghanim Sons Automotive Co KSC's Days Inventory falls into.

Ali Alghanim Sons Automotive Co KSC Days Inventory Calculation

Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Ali Alghanim Sons Automotive Co KSC's Days Inventory for the fiscal year that ended in Dec. 2023 is calculated as

	Days Inventory (A: Dec. 2023 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )	/	Cost of Goods Sold (A: Dec. 2023 )	*	Days in Period
=	( (52.345	+	63.292)	/	2 )	/	198.691	*	365
=	57.8185					/	198.691	*	365
=	106.21

Ali Alghanim Sons Automotive Co KSC's Days Inventory for the quarter that ended in Mar. 2024 is calculated as:

	Days Inventory (Q: Mar. 2024 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
=	( (63.292	+	74.175)	/	2 )	/	48.728	*	365 / 4
=	68.7335					/	48.728	*	365 / 4
=	128.71

Ali Alghanim Sons Automotive Co KSC (KUW:ALG) Days Inventory Explanation

Days Inventory indicates the liquidity of the inventory. Generally, a lower Days Inventory is preferred as it indicates a shorter duration to clear off the inventory. An increase of the ratio may indicate the company's sales slowed. Similar ratios related to Days Inventory are:

1. Inventory Turnover measures how fast the company turns over its inventory within a year.

Ali Alghanim Sons Automotive Co KSC's Inventory Turnover for the three months ended in Mar. 2024 is calculated as

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	48.728	/	68.7335
	=	0.71

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.

Ali Alghanim Sons Automotive Co KSC's Inventory to Revenue for the three months ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories	/	Revenue
	=	68.7335	/	64.227
	=	1.07

Be Aware

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.

Ali Alghanim Sons Automotive Co KSC Days Inventory Related Terms

Thank you for viewing the detailed overview of Ali Alghanim Sons Automotive Co KSC's Days Inventory provided by GuruFocus.com. Please click on the following links to see related term pages.

Ali Alghanim Sons Automotive Co KSC (KUW:ALG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Ali Alghanim Sons Automotive Co KSC (KUW:ALG) » Definitions » Days Inventory

Comparable Companies

Traded in Other Exchanges

N/A

Address

Airport Road 55, P.O. Box 21540, Safat, Opposite Kaifan Telecommunication, Shuwaikh, KWT, 13076

Website

https://alg.com.kw

Ali Alghanim Sons Automotive Co KSC is engaged in the automotive business. The Primary Activities of the Company are selling and purchasing cars and spare parts, importing and exporting light and heavy vehicles and cars, renting cars, maintaining light & heavy vehicles and cars, trading auto spare parts, and renting equipment and their maintenance. The Group is divided into four main geographical segments which are the State of Kuwait, Iraq, Egypt and the United Arab Emirates. The majority is derived from Kuwait.