Norsk Hydro ASA (Norsk Hydro ASA) Inventory Turnover : 0.87 (As of Dec. 2023)

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What is Norsk Hydro ASA 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. Norsk Hydro ASA's Cost of Goods Sold for the three months ended in Dec. 2023 was $2,159 Mil. Norsk Hydro ASA's Average Total Inventories for the quarter that ended in Dec. 2023 was $2,495 Mil. Norsk Hydro ASA's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.87.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Norsk Hydro ASA's Days Inventory for the three months ended in Dec. 2023 was 105.45.

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. Norsk Hydro ASA's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.56.

Norsk Hydro ASA Inventory Turnover Historical Data

The historical data trend for Norsk Hydro ASA'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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Norsk Hydro ASA Inventory Turnover Chart

Norsk Hydro ASA Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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4.02

3.85

4.24

4.79

4.30

Norsk Hydro ASA 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															0.75	1.08	1.15	1.17	0.87

Norsk Hydro ASA Inventory Turnover Calculation

Norsk Hydro ASA'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 )
=	11710.429	/ (	(3039.949	+	2412.365)	/	2 )
=	11710.429	/	2726.157
=	4.30

Norsk Hydro ASA'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 )
=	2159.08	/ (	(2577.974	+	2412.365)	/	2 )
=	2159.08	/	2495.1695
=	0.87

Norsk Hydro ASA (OTCPK:NHYKF) 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.

Norsk Hydro ASA'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
	=	2495.1695	/	2159.08	*	365 / 4
	=	105.45

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.

Norsk Hydro ASA'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 )
	=	2495.1695	/	4431.911
	=	0.56

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.

Norsk Hydro ASA Inventory Turnover Related Terms

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Norsk Hydro ASA (Norsk Hydro ASA) Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Norsk Hydro ASA (OTCPK:NHYKF) » Definitions » Inventory Turnover

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Traded in Other Exchanges

NHYDY:USA NHYo:Sweden NHY:Norway NHYo:UK 0Q11:UK NOH1:Germany

Address

Postboks 980 Skøyen,, Oslo, NOR, NO-0240

Website

https://www.hydro.com

Norsk Hydro ASA is an aluminium and renewable energy company committed to a sustainable future. It's engaged in energy to bauxite mining and alumina refining, primary aluminium, aluminium extrusions, and aluminium recycling. The company's reportable segments are Hydro Bauxite & Alumina, Hydro Aluminium Metal, Hydro Extrusions, and Hydro Energy, as well as the Hydro Metal Markets activities. Hydro Extrusions delivers products within extrusion profiles, building systems, and precision tubing, and is operating several recycling facilities, both integrated with its extrusion plants and separate plants. Hydro Extrusions are present in about 40 countries. It is delivered to sectors such as construction, automotive and heating, etc. Key revenue comes from the Hydro Extrusions segment.

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