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Alkem Laboratories (NSE:ALKEM) Inventory Turnover : 0.51 (As of Dec. 2023)


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What is Alkem Laboratories 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. Alkem Laboratories's Cost of Goods Sold for the three months ended in Dec. 2023 was ₹13,046 Mil. Alkem Laboratories's Average Total Inventories for the quarter that ended in Dec. 2023 was ₹25,415 Mil. Alkem Laboratories's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.51.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Alkem Laboratories's Days Inventory for the three months ended in Dec. 2023 was 177.76.

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. Alkem Laboratories's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.76.


Alkem Laboratories Inventory Turnover Historical Data

The historical data trend for Alkem Laboratories'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.

Alkem Laboratories Inventory Turnover Chart

Alkem Laboratories Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.09 2.08 1.74 1.61 1.78

Alkem Laboratories 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 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 0.45 0.51 0.46 0.52 0.51

Alkem Laboratories Inventory Turnover Calculation

Alkem Laboratories'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 )
=49823.2 / ((30055.3 + 26075.3) / 2 )
=49823.2 / 28065.3
=1.78

Alkem Laboratories'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 )
=13046.4 / ((25414.6 + 0) / 1 )
=13046.4 / 25414.6
=0.51

* 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.


Alkem Laboratories  (NSE:ALKEM) 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.

Alkem Laboratories'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
=25414.6/13046.4*365 / 4
=177.76

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.

Alkem Laboratories'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 )
=25414.6 / 33238.7
=0.76

* 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.


Alkem Laboratories Inventory Turnover Related Terms

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Alkem Laboratories (NSE:ALKEM) Business Description

Traded in Other Exchanges
Address
Senapati Bapat Marg, Alkem House, Devashish Building, Lower Parel, Mumbai, MH, IND, 400 013
Alkem Laboratories Ltd is an Indian pharmaceutical company engaged in the development, manufacture, and sale of pharmaceutical and nutraceutical products. The company produces branded generics, generic drugs, active pharmaceutical ingredients (APIs) and nutraceuticals in acute and chronic therapeutic areas, such as anti-infective, pain and analgesics, vitamins/minerals/nutrients, cardiac and Diabetology, Gynecology, neuro/central nervous system, dermatology, anti-diabetes, anti-osteoporosis, cardiovascular, and muscle relaxants, which are marketed in Indian and International markets. It operates through the pharmaceutical business segment.

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