Salvo Chemical Industry (DHA:SALVOCHEM) Inventory Turnover : 2.69 (As of Dec. 2023)

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What is Salvo Chemical Industry 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. Salvo Chemical Industry's Cost of Goods Sold for the three months ended in Dec. 2023 was BDT515 Mil. Salvo Chemical Industry's Average Total Inventories for the quarter that ended in Dec. 2023 was BDT192 Mil. Salvo Chemical Industry's Inventory Turnover for the quarter that ended in Dec. 2023 was 2.69.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Salvo Chemical Industry's Days Inventory for the three months ended in Dec. 2023 was 33.94.

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. Salvo Chemical Industry's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.32.

Salvo Chemical Industry Inventory Turnover Historical Data

The historical data trend for Salvo Chemical Industry'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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Salvo Chemical Industry Inventory Turnover Chart

Salvo Chemical Industry Annual Data

Trend

Dec12

Dec13

Dec15

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Inventory Turnover

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4.38

3.52

3.89

8.45

11.36

Salvo Chemical Industry Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															1.63	2.04	1.88	3.10	2.69

Salvo Chemical Industry Inventory Turnover Calculation

Salvo Chemical Industry's Inventory Turnover for the fiscal year that ended in Jun. 2023 is calculated as

	Inventory Turnover (A: Jun. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jun. 2023 )	/ (	(Total Inventories (A: Jun. 2022 )	+	Total Inventories (A: Jun. 2023 ))	/	count )
=	1253.318	/ (	(75.451	+	145.277)	/	2 )
=	1253.318	/	110.364
=	11.36

Salvo Chemical Industry'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: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	515.153	/ (	(134.843	+	248.361)	/	2 )
=	515.153	/	191.602
=	2.69

Salvo Chemical Industry (DHA:SALVOCHEM) 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.

Salvo Chemical Industry's Days Inventory for the three 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
	=	191.602	/	515.153	*	365 / 4
	=	33.94

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.

Salvo Chemical Industry'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 )
	=	191.602	/	598.543
	=	0.32

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.

Salvo Chemical Industry Inventory Turnover Related Terms

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Salvo Chemical Industry (DHA:SALVOCHEM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Salvo Chemical Industry Ltd (DHA:SALVOCHEM) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 210-211, Nawabpur Road, Suite number 401, 3rd floor, Dhaka, BGD, 1100

Website

https://www.salvochemical.com

Salvo Chemical Industry Ltd mainly engages in the manufacturing of sulphuric acid and liquid Glucose. In addition to that, the company also produces battery-grade water, Magnesium and zinc sulfate, starch, etc. Sulphuric Acid is used to produce ferrous sulfate, alum, etc, Additionally, it is used in the manufacturing of plasticizers, dyestuffs, explosives, silicate for toothpaste, adhesives, rubbers, edible oils, lubricants, the production of food acids. The segments of the company include Sulphuric Acid and battery-grade water, Starch & by- product, and Liquid Glucose. The majority of revenue is generated from the Starch & by-product segment.

Salvo Chemical Industry (DHA:SALVOCHEM) Headlines

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