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Ashok Leyland (NSE:ASHOKLEY) Inventory Turnover : 1.65 (As of Jun. 2024)


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What is Ashok Leyland 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. Ashok Leyland's Cost of Goods Sold for the three months ended in Jun. 2024 was ₹65,947 Mil. Ashok Leyland's Average Total Inventories for the quarter that ended in Jun. 2024 was ₹40,080 Mil. Ashok Leyland's Inventory Turnover for the quarter that ended in Jun. 2024 was 1.65.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Ashok Leyland's Days Inventory for the three months ended in Jun. 2024 was 55.46.

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. Ashok Leyland's Inventory-to-Revenue for the quarter that ended in Jun. 2024 was 0.38.


Ashok Leyland Inventory Turnover Historical Data

The historical data trend for Ashok Leyland'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.

Ashok Leyland Inventory Turnover Chart

Ashok Leyland Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.83 6.00 7.02 9.68 7.88

Ashok Leyland Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 1.82 1.87 1.75 2.17 1.65

Ashok Leyland Inventory Turnover Calculation

Ashok Leyland's Inventory Turnover for the fiscal year that ended in Mar. 2024 is calculated as

Inventory Turnover (A: Mar. 2024 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Mar. 2024 ) / ((Total Inventories (A: Mar. 2023 ) + Total Inventories (A: Mar. 2024 )) / count )
=293467.6 / ((34404.3 + 40080.1) / 2 )
=293467.6 / 37242.2
=7.88

Ashok Leyland's Inventory Turnover for the quarter that ended in Jun. 2024 is calculated as

Inventory Turnover (Q: Jun. 2024 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Jun. 2024 ) / ((Total Inventories (Q: Mar. 2024 ) + Total Inventories (Q: Jun. 2024 )) / count )
=65947.2 / ((40080.1 + 0) / 1 )
=65947.2 / 40080.1
=1.65

* 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.


Ashok Leyland  (NSE:ASHOKLEY) 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.

Ashok Leyland's Days Inventory for the three months ended in Jun. 2024 is calculated as:

Days Inventory =Average Total Inventories (Q: Jun. 2024 )/Cost of Goods Sold (Q: Jun. 2024 )*Days in Period
=40080.1/65947.2*365 / 4
=55.46

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.

Ashok Leyland's Inventory to Revenue for the quarter that ended in Jun. 2024 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=40080.1 / 106814
=0.38

* 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.


Ashok Leyland Inventory Turnover Related Terms

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Ashok Leyland Business Description

Traded in Other Exchanges
Address
No. 1, Sardar Patel Road, Guindy, Chennai, TN, IND, 600032
Ashok Leyland Ltd is an automobile manufacturing company. The company manufactures commercial vehicles, engines, spare parts, and accessories, with the vast majority of revenue being derived from commercial vehicle sales. It produces and sells vehicles across different categories such as Trucks, Buses, Light Commercial Vehicles, and Defence. The company's operating segments are; Commercial vehicles, and Financial services. Geographically, it derives the majority revenue within India and the rest from other markets.

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