Hero MotoCorp (NSE:HEROMOTOCO) Inventory Turnover : 3.60 (As of Mar. 2024)

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What is Hero MotoCorp 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. Hero MotoCorp's Cost of Goods Sold for the three months ended in Mar. 2024 was ₹63,287 Mil. Hero MotoCorp's Average Total Inventories for the quarter that ended in Mar. 2024 was ₹17,559 Mil. Hero MotoCorp's Inventory Turnover for the quarter that ended in Mar. 2024 was 3.60.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Hero MotoCorp's Days Inventory for the three months ended in Mar. 2024 was 25.32.

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. Hero MotoCorp's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.18.

Hero MotoCorp Inventory Turnover Historical Data

The historical data trend for Hero MotoCorp'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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Hero MotoCorp Inventory Turnover Chart

Hero MotoCorp Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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15.74

14.22

12.88

14.83

14.53

Hero MotoCorp 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															3.25	3.49	3.20	3.23	3.60

Hero MotoCorp Inventory Turnover Calculation

Hero MotoCorp'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 )
=	255094.4	/ (	(17563.9	+	17559)	/	2 )
=	255094.4	/	17561.45
=	14.53

Hero MotoCorp'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 )
=	63286.7	/ (	(0	+	17559)	/	1 )
=	63286.7	/	17559
=	3.60

Hero MotoCorp (NSE:HEROMOTOCO) 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.

Hero MotoCorp'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
	=	17559	/	63286.7	*	365 / 4
	=	25.32

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.

Hero MotoCorp'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 )
	=	17559	/	96166.8
	=	0.18

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.

Hero MotoCorp Inventory Turnover Related Terms

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Hero MotoCorp (NSE:HEROMOTOCO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Hero MotoCorp Ltd (NSE:HEROMOTOCO) » Definitions » Inventory Turnover

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Traded in Other Exchanges

500182:India

Address

Nelson Mandela Road, The Grand Plaza, Plot No. 2, Vasant Kunj - Phase -II, New Delhi, IND, 110070

Website

https://www.heromotocorp.com

Hero MotoCorp Ltd is a motorcycle manufacturing company domiciled in India. The company manufactures and distributes motorcycles, scooters, and related spare parts. Sales of motorcycles comprise the largest contribution to consolidated revenue, followed by scooter sales. While Hero MotoCorp derives the vast majority of revenue from domestic operations, the company also has operations in Latin America, South Asia, Africa, and the Middle East. Hero MotoCorp principally manufactures and assembles production domestically. The Company primarily operates in the automotive segment. The automotive segment includes all activities related to development, design, manufacture, assembly and sale of vehicles, as well as sale of related parts and accessories.

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