Asian Paints (BOM:500820) Inventory Turnover : 0.83 (As of Mar. 2024)

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What is Asian Paints 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. Asian Paints's Cost of Goods Sold for the three months ended in Mar. 2024 was ₹49,147 Mil. Asian Paints's Average Total Inventories for the quarter that ended in Mar. 2024 was ₹59,234 Mil. Asian Paints's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.83.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Asian Paints's Days Inventory for the three months ended in Mar. 2024 was 109.98.

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. Asian Paints's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.68.

Asian Paints Inventory Turnover Historical Data

The historical data trend for Asian Paints'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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Asian Paints Inventory Turnover Chart

Asian Paints Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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3.50

3.38

3.69

3.42

3.31

Asian Paints 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															0.81	0.84	0.79	0.84	0.83

Asian Paints Inventory Turnover Calculation

Asian Paints's Inventory Turnover for the fiscal year that ended in Mar. 2024 is calculated as

	Inventory Turnover (A: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2024 )	/ (	(Total Inventories (A: Mar. 2023 )	+	Total Inventories (A: Mar. 2024 ))	/	count )
=	200902.1	/ (	(62106.4	+	59234.1)	/	2 )
=	200902.1	/	60670.25
=	3.31

Asian Paints'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 )
=	49147.2	/ (	(0	+	59234.1)	/	1 )
=	49147.2	/	59234.1
=	0.83

Asian Paints (BOM:500820) 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.

Asian Paints'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
	=	59234.1	/	49147.2	*	365 / 4
	=	109.98

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.

Asian Paints'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 )
	=	59234.1	/	87014.6
	=	0.68

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.

Asian Paints Inventory Turnover Related Terms

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Asian Paints (BOM:500820) Business Description

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ASIANPAINT:India

Address

Asian Paints House, 6A, Shantinagar, Santacruz (East), Mumbai, MH, IND, 400 055

Website

https://www.asianpaints.com

Asian Paints Ltd manufactures and sells a variety of paint and home improvement products. The firm organizes itself into two segments based on product type. The paints segment, which generates the vast majority of revenue, sells interior and exterior paints, metal finish, and wood finish. The home improvement segment sells kitchen and bathroom products. Asian Paints sells its products to distributors and directly to the home improvement industry through the company's network of retail stores. The majority of revenue comes from India.

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