Ali Alghanim Sons Automotive Co KSC (KUW:ALG) Inventory Turnover : 0.71 (As of Mar. 2024)

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What is Ali Alghanim Sons Automotive Co KSC 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. Ali Alghanim Sons Automotive Co KSC's Cost of Goods Sold for the three months ended in Mar. 2024 was KWD48.7 Mil. Ali Alghanim Sons Automotive Co KSC's Average Total Inventories for the quarter that ended in Mar. 2024 was KWD68.7 Mil. Ali Alghanim Sons Automotive Co KSC's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.71.

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 three months ended in Mar. 2024 was 128.71.

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 quarter that ended in Mar. 2024 was 1.07.

Ali Alghanim Sons Automotive Co KSC Inventory Turnover Historical Data

The historical data trend for Ali Alghanim Sons Automotive Co KSC'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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Ali Alghanim Sons Automotive Co KSC Inventory Turnover Chart

Ali Alghanim Sons Automotive Co KSC Annual Data

Trend

Dec21

Dec22

Dec23

Inventory Turnover

5.54

3.78

3.44

Ali Alghanim Sons Automotive Co KSC Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial							0.95	0.87	0.81	0.79	0.71

Ali Alghanim Sons Automotive Co KSC Inventory Turnover Calculation

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

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	198.691	/ (	(52.345	+	63.292)	/	2 )
=	198.691	/	57.8185
=	3.44

Ali Alghanim Sons Automotive Co KSC'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 )
=	48.728	/ (	(63.292	+	74.175)	/	2 )
=	48.728	/	68.7335
=	0.71

Ali Alghanim Sons Automotive Co KSC (KUW:ALG) 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.

Ali Alghanim Sons Automotive Co KSC'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
	=	68.7335	/	48.728	*	365 / 4
	=	128.71

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 quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	68.7335	/	64.227
	=	1.07

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.

Ali Alghanim Sons Automotive Co KSC Inventory Turnover Related Terms

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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 » Inventory Turnover

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.