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Nokian Tyres (Nokian Tyres) Inventory Turnover : 0.43 (As of Mar. 2024)


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What is Nokian Tyres 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. Nokian Tyres's Cost of Goods Sold for the three months ended in Mar. 2024 was $225 Mil. Nokian Tyres's Average Total Inventories for the quarter that ended in Mar. 2024 was $526 Mil. Nokian Tyres's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.43.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Nokian Tyres's Days Inventory for the three months ended in Mar. 2024 was 212.93.

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. Nokian Tyres's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 2.05.

Nokian Tyres Inventory Turnover Historical Data

The historical data trend for Nokian Tyres'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.

* Premium members only.

Nokian Tyres Inventory Turnover Chart

Nokian Tyres Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.65 2.68 3.02 2.16 1.89

Nokian Tyres 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.40 0.49 0.45 0.58 0.43

Nokian Tyres Inventory Turnover Calculation

Nokian Tyres'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 )
=1017.012 / ((561.335 + 514.395) / 2 )
=1017.012 / 537.865
=1.89

Nokian Tyres'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 )
=225.435 / ((514.395 + 537.717) / 2 )
=225.435 / 526.056
=0.43

* 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.

Nokian Tyres  (OTCPK:NKRKY) 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.

Nokian Tyres'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
=526.056/225.435*365 / 4
=212.93

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.

Nokian Tyres'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 )
=526.056 / 257.174
=2.05

* 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.

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.

Nokian Tyres Inventory Turnover Related Terms

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Nokian Tyres (Nokian Tyres) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Nokian Tyres PLC (OTCPK:NKRKY) » Definitions » Inventory Turnover
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Traded in Other Exchanges
NKRKF:USA 1TYRES:Italy 0FFY:UK TYRES:Finland NRE:Germany
Address
Pirkkalaistie 7, P.O. Box 20, Nokia, FIN, 37101
Website
https://www.nokiantyres.com
Nokian Tyres plc develops and manufactures rubber tires under the Nokian Tyres brand name for passenger cars, vans, trucks and heavy machinery. The company sells tires to wholesale distributors and through company-owned retail stores, which are operated under the Vianor brand name. The firm organizes itself into three segments based on product and distribution type: Passenger Car Tyres, Heavy Tyres, and Vianor. The passenger car tires segment generates the majority of revenue.