Recordati SpA (MIL:REC) Inventory Turnover : 0.42 (As of Dec. 2023)

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What is Recordati SpA 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. Recordati SpA's Cost of Goods Sold for the three months ended in Dec. 2023 was €169 Mil. Recordati SpA's Average Total Inventories for the quarter that ended in Dec. 2023 was €403 Mil. Recordati SpA's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.42.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Recordati SpA's Days Inventory for the three months ended in Dec. 2023 was 217.45.

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. Recordati SpA's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.77.

Recordati SpA Inventory Turnover Historical Data

The historical data trend for Recordati SpA'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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Recordati SpA Inventory Turnover Chart

Recordati SpA Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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2.02

1.70

1.78

1.74

1.59

Recordati SpA Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															0.38	0.35	0.43	0.42	0.47

Recordati SpA Inventory Turnover Calculation

Recordati SpA'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 )
=	659.707	/ (	(424.08	+	404.831)	/	2 )
=	659.707	/	414.4555
=	1.59

Recordati SpA'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 )
=	169.212	/ (	(401.645	+	404.831)	/	2 )
=	169.212	/	403.238
=	0.42

Recordati SpA (MIL:REC) 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.

Recordati SpA'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
	=	403.238	/	169.212	*	365 / 4
	=	217.45

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.

Recordati SpA'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 )
	=	403.238	/	526.157
	=	0.77

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.

Recordati SpA Inventory Turnover Related Terms

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Recordati SpA (MIL:REC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Recordati SpA (MIL:REC) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

RICFY:USA RECm:UK 0KBS:UK RER1:Germany RER1:Germany

Address

Via Matteo Civitali 1, MIlan, ITA, 20148

Website

https://www.recordati.com

Recordati SpA is a drug manufacturing company that focuses on specialty pharmaceuticals. The company produces and promotes medicines globally that focus on primary-care therapies and rare diseases. Recordati uses strategic partnerships as part of its long-term growth. The vast majority of the company's revenue is generated in Italy, followed by the United States, France, and Germany. Recordati reports two operating segments: Specialty and Primary care and Rare diseases. The bulk of the company's profit is derived from its specialty and primary care segment, which includes the production of active ingredients.