ReTo Eco-Solutions (ReTo Eco-Solutions) Inventory Turnover : 3.94 (As of Dec. 2023)

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What is ReTo Eco-Solutions 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. ReTo Eco-Solutions's Cost of Goods Sold for the six months ended in Dec. 2023 was $1.89 Mil. ReTo Eco-Solutions's Average Total Inventories for the quarter that ended in Dec. 2023 was $0.48 Mil. ReTo Eco-Solutions's Inventory Turnover for the quarter that ended in Dec. 2023 was 3.94.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. ReTo Eco-Solutions's Days Inventory for the six months ended in Dec. 2023 was 46.28.

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. ReTo Eco-Solutions's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.24.

ReTo Eco-Solutions Inventory Turnover Historical Data

The historical data trend for ReTo Eco-Solutions'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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ReTo Eco-Solutions Inventory Turnover Chart

ReTo Eco-Solutions Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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11.22

9.70

7.27

14.13

12.77

ReTo Eco-Solutions Semi-Annual Data
	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Inventory Turnover	Get a 7-Day Free Trial												2.18	4.03	5.62	1.97	3.94

ReTo Eco-Solutions Inventory Turnover Calculation

ReTo Eco-Solutions'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 )
=	3.026	/ (	(0.338	+	0.136)	/	2 )
=	3.026	/	0.237
=	12.77

ReTo Eco-Solutions'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: Jun. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	1.887	/ (	(0.821	+	0.136)	/	2 )
=	1.887	/	0.4785
=	3.94

ReTo Eco-Solutions (NAS:RETO) 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.

ReTo Eco-Solutions's Days Inventory for the six 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
	=	0.4785	/	1.887	*	365 / 2
	=	46.28

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.

ReTo Eco-Solutions'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 )
	=	0.4785	/	2.003
	=	0.24

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.

ReTo Eco-Solutions Inventory Turnover Related Terms

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ReTo Eco-Solutions (ReTo Eco-Solutions) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » ReTo Eco-Solutions Inc (NAS:RETO) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

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Address

C/o Beijing REIT Technology Development Co., Ltd., X-702, Runfengdeshangyuan, 60 Anli Road, Chaoyang District, Beijing, CHN, 100101

Website

http://www.retoeco.com

ReTo Eco-Solutions Inc is a manufacturer and distributor of eco-friendly construction materials and fly-ash, as well as equipment used to produce these eco-friendly construction materials. The company engaged in providing consultation, design, project implementation and construction of urban ecological environments for capturing, controlling and re-using rainwater. It operates through four segments namely Machinery and Equipment sales, Construction materials sales, Municipal Construction Projects, and Technology Consulting and other services. The company earns its revenue from Machinery and Equipment sales segment. Geographically, it derives a majority of its revenue from China.