ITC (LUX:ITC) Inventory Turnover : 0.47 (As of Dec. 2023)

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What is ITC 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. ITC's Cost of Goods Sold for the three months ended in Dec. 2023 was $846 Mil. ITC's Average Total Inventories for the quarter that ended in Dec. 2023 was $1,790 Mil. ITC's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.47.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. ITC's Days Inventory for the three months ended in Dec. 2023 was 193.15.

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. ITC's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.83.

ITC Inventory Turnover Historical Data

The historical data trend for ITC'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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ITC Inventory Turnover Chart

ITC Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Inventory Turnover

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2.21

2.02

2.12

2.44

2.48

ITC 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															0.52	0.61	0.55	0.48	0.47

ITC Inventory Turnover Calculation

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

	Inventory Turnover (A: Mar. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2023 )	/ (	(Total Inventories (A: Mar. 2022 )	+	Total Inventories (A: Mar. 2023 ))	/	count )
=	3581.107	/ (	(1440.3	+	1448.236)	/	2 )
=	3581.107	/	1444.268
=	2.48

ITC'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 )
=	845.827	/ (	(1790.342	+	0)	/	1 )
=	845.827	/	1790.342
=	0.47

ITC (LUX:ITC) 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.

ITC'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
	=	1790.342	/	845.827	*	365 / 4
	=	193.15

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.

ITC'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 )
	=	1790.342	/	2146.769
	=	0.83

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.

ITC Inventory Turnover Related Terms

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ITC (LUX:ITC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Tobacco Products » ITC Ltd (LUX:ITC) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

ITC:India 500875:India

Address

37 Jawaharlal Nehru Road, Virginia House, Kolkata, WB, IND, 700 071

Website

https://www.itcportal.com

ITC Ltd is an Indian conglomerate that primarily operates in the consumer goods space, particularly cigarettes. The company operates in four main business segments: Fast Moving Consumer Goods; Hotels; Paperboards, Paper, and Packaging; and Agri-Business. Roughly three-quarters of the company's total revenue comes from the Fast Moving Consumer Goods Business, which is dominated by cigarettes but also includes branded packaged foods, personal care products, and other categories. The company generates the vast majority of its revenue in India.