Afrimat (JSE:AFT) Inventory Turnover : 3.85 (As of Aug. 2023)

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What is Afrimat 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. Afrimat's Cost of Goods Sold for the six months ended in Aug. 2023 was R1,870 Mil. Afrimat's Average Total Inventories for the quarter that ended in Aug. 2023 was R486 Mil. Afrimat's Inventory Turnover for the quarter that ended in Aug. 2023 was 3.85.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Afrimat's Days Inventory for the six months ended in Aug. 2023 was 47.46.

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. Afrimat's Inventory-to-Revenue for the quarter that ended in Aug. 2023 was 0.17.

Afrimat Inventory Turnover Historical Data

The historical data trend for Afrimat'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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Afrimat Inventory Turnover Chart

Afrimat Annual Data

Trend

Feb14

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Inventory Turnover

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8.12

8.58

8.28

7.00

6.24

Afrimat Semi-Annual Data
	Feb14	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23
Inventory Turnover	Get a 7-Day Free Trial															4.89	3.20	2.90	2.73	3.85

Afrimat Inventory Turnover Calculation

Afrimat's Inventory Turnover for the fiscal year that ended in Feb. 2023 is calculated as

	Inventory Turnover (A: Feb. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Feb. 2023 )	/ (	(Total Inventories (A: Feb. 2022 )	+	Total Inventories (A: Feb. 2023 ))	/	count )
=	3208.384	/ (	(568.266	+	460.77)	/	2 )
=	3208.384	/	514.518
=	6.24

Afrimat's Inventory Turnover for the quarter that ended in Aug. 2023 is calculated as

	Inventory Turnover (Q: Aug. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Aug. 2023 )	/ (	(Total Inventories (Q: Feb. 2023 )	+	Total Inventories (Q: Aug. 2023 ))	/	count )
=	1870.239	/ (	(460.77	+	511.963)	/	2 )
=	1870.239	/	486.3665
=	3.85

Afrimat (JSE:AFT) 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.

Afrimat's Days Inventory for the six months ended in Aug. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Aug. 2023 )	/	Cost of Goods Sold (Q: Aug. 2023 )	*	Days in Period
	=	486.3665	/	1870.239	*	365 / 2
	=	47.46

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.

Afrimat's Inventory to Revenue for the quarter that ended in Aug. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Aug. 2023 )	/	Revenue (Q: Aug. 2023 )
	=	486.3665	/	2843.674
	=	0.17

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.

Afrimat Inventory Turnover Related Terms

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Afrimat (JSE:AFT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Afrimat Ltd (JSE:AFT) » Definitions » Inventory Turnover

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Traded in Other Exchanges

N/A

Address

Corner Willie van Schoor Avenue and Old Oak Road, Tyger Valley Office Park No. 2, Tyger Valley, Bellville, WC, ZAF, 7530

Website

https://www.afrimat.co.za

Afrimat Ltd is a South Africa-based company. It operates in three segments: Construction Materials, which comprises aggregates, concrete-based products, and contracting operations; Industrial Minerals segment consists mainly of the sale of limestone, dolomite, and industrial sand; Bulk Commodities segment includes iron ore and anthracite; and Services segment consists of Group shared services including IT services, consulting services, etc. It operates in a single geographical segment, which is the African region.