Sumitomo Chemical Co (TSE:4005) Inventory Turnover : 0.76 (As of Mar. 2024)

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What is Sumitomo Chemical Co 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. Sumitomo Chemical Co's Cost of Goods Sold for the three months ended in Mar. 2024 was 円553,453 Mil. Sumitomo Chemical Co's Average Total Inventories for the quarter that ended in Mar. 2024 was 円733,048 Mil. Sumitomo Chemical Co's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.76.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Sumitomo Chemical Co's Days Inventory for the three months ended in Mar. 2024 was 120.86.

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. Sumitomo Chemical Co's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 1.15.

Sumitomo Chemical Co Inventory Turnover Historical Data

The historical data trend for Sumitomo Chemical Co'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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Sumitomo Chemical Co Inventory Turnover Chart

Sumitomo Chemical Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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3.09

3.02

3.25

2.97

2.68

Sumitomo Chemical Co 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															0.67	0.56	0.62	0.60	0.76

Sumitomo Chemical Co Inventory Turnover Calculation

Sumitomo Chemical Co'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 )
=	1947198	/ (	(744474	+	709637)	/	2 )
=	1947198	/	727055.5
=	2.68

Sumitomo Chemical Co'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 )
=	553453	/ (	(756459	+	709637)	/	2 )
=	553453	/	733048
=	0.76

Sumitomo Chemical Co (TSE:4005) 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.

Sumitomo Chemical Co'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
	=	733048	/	553453	*	365 / 4
	=	120.86

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.

Sumitomo Chemical Co'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 )
	=	733048	/	640024
	=	1.15

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.

Sumitomo Chemical Co Inventory Turnover Related Terms

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Sumitomo Chemical Co (TSE:4005) Business Description

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SOMMY:USA SOMMF:USA SMM:Germany

Address

27-1, Shinkawa 2-chome, Chuo-ku, Tokyo, JPN, 104-8260

Website

http://www.sumitomo-chem.co.jp

Sumitomo Chemical Co Ltd manufactures and sells chemicals and chemical-based products. The firm is organized into six segments by product type. The petrochemicals and plastics segment, which generates more revenue than any other segment, sells multiple products including propylene and polypropylene used in automobile seat cushions and interior panels. The pharmaceutical segment sells medicine to treat diabetes, neurology, cancer, and infectious diseases. The IT-related chemicals segment sells compound semiconductors and polarizing films used in LCD displays for TVs and smartphones. The other three segments are health and crop sciences; energy and functional materials; and "others." The majority of revenue comes from Japan and China.

Sumitomo Chemical Co (TSE:4005) Headlines

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