Rajapalayam Mills (BOM:532503) Inventory Turnover : 0.45 (As of Mar. 2024)

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What is Rajapalayam Mills 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. Rajapalayam Mills's Cost of Goods Sold for the three months ended in Mar. 2024 was ₹1,454 Mil. Rajapalayam Mills's Average Total Inventories for the quarter that ended in Mar. 2024 was ₹3,239 Mil. Rajapalayam Mills's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.45.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Rajapalayam Mills's Days Inventory for the three months ended in Mar. 2024 was 203.36.

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. Rajapalayam Mills's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 1.46.

Rajapalayam Mills Inventory Turnover Historical Data

The historical data trend for Rajapalayam Mills'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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Rajapalayam Mills Inventory Turnover Chart

Rajapalayam Mills Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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1.66

2.12

2.34

1.68

1.64

Rajapalayam Mills 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															0.41	0.37	0.46	0.42	0.45

Rajapalayam Mills Inventory Turnover Calculation

Rajapalayam Mills'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 )
=	5637.9	/ (	(3635.3	+	3239.2)	/	2 )
=	5637.9	/	3437.25
=	1.64

Rajapalayam Mills'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 )
=	1453.5	/ (	(0	+	3239.2)	/	1 )
=	1453.5	/	3239.2
=	0.45

Rajapalayam Mills (BOM:532503) 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.

Rajapalayam Mills'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
	=	3239.2	/	1453.5	*	365 / 4
	=	203.36

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.

Rajapalayam Mills'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 )
	=	3239.2	/	2224.4
	=	1.46

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.

Rajapalayam Mills Inventory Turnover Related Terms

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Rajapalayam Mills (BOM:532503) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Rajapalayam Mills Ltd (BOM:532503) » Definitions » Inventory Turnover

Traded in Other Exchanges

N/A

Address

Rajapalayam Mills Premises, Post Box No. 1, P.A.C. Ramasamy Raja Salai, Rajapalayam, TN, IND, 626117

Website

https://www.rajapalayammills.co.in

Rajapalayam Mills Ltd is an India-based company engaged in the manufacture of yarn and fabrics. The operates in segments namely, Textiles and Windmills. The Textiles segment of the company offers ring yarn, compact yarn, Elitwist compact yarn, TFO doubled yarn, gassed yarn, slub, and multicount yarn, model/Tencel yarn, open-end yarn, and organic cotton yarn, and the windmills segment engaged in the generation of power from windmills. The firm generates a majority of its revenue from the textile segment.

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