Multi-Color (Multi-Color) Inventory Turnover : 2.49 (As of Mar. 2019)

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What is Multi-Color 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. Multi-Color's Cost of Goods Sold for the three months ended in Mar. 2019 was $356 Mil. Multi-Color's Average Total Inventories for the quarter that ended in Mar. 2019 was $143 Mil. Multi-Color's Inventory Turnover for the quarter that ended in Mar. 2019 was 2.49.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Multi-Color's Days Inventory for the three months ended in Mar. 2019 was 36.69.

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. Multi-Color's Inventory-to-Revenue for the quarter that ended in Mar. 2019 was 0.33.

Multi-Color Inventory Turnover Historical Data

The historical data trend for Multi-Color'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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Multi-Color Inventory Turnover Chart

Multi-Color Annual Data

Trend

Mar10

Mar11

Mar12

Mar13

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Inventory Turnover

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11.35

11.76

11.61

9.09

8.99

Multi-Color Quarterly Data
	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19
Inventory Turnover	Get a 7-Day Free Trial															2.22	2.36	2.48	2.38	2.49

Multi-Color Inventory Turnover Calculation

Multi-Color's Inventory Turnover for the fiscal year that ended in Mar. 2019 is calculated as

	Inventory Turnover (A: Mar. 2019 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2019 )	/ (	(Total Inventories (A: Mar. 2018 )	+	Total Inventories (A: Mar. 2019 ))	/	count )
=	1403.634	/ (	(167.95	+	144.235)	/	2 )
=	1403.634	/	156.0925
=	8.99

Multi-Color's Inventory Turnover for the quarter that ended in Mar. 2019 is calculated as

	Inventory Turnover (Q: Mar. 2019 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2019 )	/ (	(Total Inventories (Q: Dec. 2018 )	+	Total Inventories (Q: Mar. 2019 ))	/	count )
=	355.762	/ (	(141.819	+	144.235)	/	2 )
=	355.762	/	143.027
=	2.49

Multi-Color (NAS:LABL) 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.

Multi-Color's Days Inventory for the three months ended in Mar. 2019 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2019 )	/	Cost of Goods Sold (Q: Mar. 2019 )	*	Days in Period
	=	143.027	/	355.762	*	365 / 4
	=	36.69

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.

Multi-Color's Inventory to Revenue for the quarter that ended in Mar. 2019 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2019 )	/	Revenue (Q: Mar. 2019 )
	=	143.027	/	437.506
	=	0.33

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.

Multi-Color Inventory Turnover Related Terms

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Multi-Color (Multi-Color) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Multi-Color Corp (NAS:LABL) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

4053 Clough Woods Drive, Batavia, OH, USA, 45103

Website

http://www.mcclabel.com

Multi-Color Corporation is an America-based company that provide label solutions. The company's products include pressure-sensitive labels, in-mold labels, heat-transfer labels, glue-applied labels, glue-applied labels, shrink sleeve labels and graphic services. These products and services primarily aim to fulfill customers' packaging needs. Customers of the company include a wide array of makers of consumer products, personal care products, wine & spirit and specialty consumer products from America, Europe, Australia, New Zealand, South Africa, China, Southeast Asia and others. America is the biggest market for the company, accounting for over half of its revenue.

Executives

Michael W Ranger	10 percent owner	C/O TXU CORP, 1601 BRYAN ST, DALLAS TX 75201
Robert R Buck	director	C/O BEACON ROOFING SUPPLY, INC., 505 HUNTMAR PARK DRIVE SUITE 300, HERNDON VA 20170
Robert Kuhn	director	C/O APTARGROUP 475 W. TERRA COTTA AVENUE, SUITE E, CRYSTAL LAKE IL 60014
Andrew H Rush	10 percent owner	C/O DIAMOND CASTLE HOLDINGS, LLC, 280 PARK AVENUE, 25TH FLOOR, EAST TOWER, NEW YORK NY 10017
Matthew M Walsh	director	ALLERGAN, 5 GIRALDA FARMS, MADISON NJ 07940
Lorrence T Kellar	director	C/O LOEHMANNS INC, 2500 HALSEY STREET, BRONX NY 10461
Lee A. Wright	director	C/O DIAMOND CASTLE HOLDINGS, LLC, 280 PARK AVENUE, 25TH FLOOR, EAST TOWER, NEW YORK NY 10017
James H Reynolds	officer: Chief Accounting Officer	201 E FOURTH STREET, CINCINNATI OH 45202