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Racing Force SpA (XPAR:ALRFG) Inventory Turnover : 0.42 (As of Dec. 2023)


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What is Racing Force SpA 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. Racing Force SpA's Cost of Goods Sold for the three months ended in Dec. 2023 was €9.80 Mil. Racing Force SpA's Average Total Inventories for the quarter that ended in Dec. 2023 was €23.44 Mil. Racing Force SpA's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.42.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Racing Force SpA's Days Inventory for the three months ended in Dec. 2023 was 218.29.

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. Racing Force SpA's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.92.

Racing Force SpA Inventory Turnover Historical Data

The historical data trend for Racing Force SpA'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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Racing Force SpA Inventory Turnover Chart

Racing Force SpA Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Inventory Turnover
1.21 1.50 1.22 1.03

Racing Force SpA Quarterly Data
Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Inventory Turnover Get a 7-Day Free Trial 0.71 0.82 0.51 0.65 0.42

Racing Force SpA Inventory Turnover Calculation

Racing Force SpA'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 )
=23.995 / ((21.591 + 25.101) / 2 )
=23.995 / 23.346
=1.03

Racing Force SpA'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 )
=9.797 / ((21.772 + 25.101) / 2 )
=9.797 / 23.4365
=0.42

* 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.

Racing Force SpA  (XPAR:ALRFG) 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.

Racing Force SpA'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
=23.4365/9.797*365 / 4
=218.29

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.

Racing Force SpA'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 )
=23.4365 / 25.452
=0.92

* 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.

Racing Force SpA Inventory Turnover Related Terms

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Racing Force SpA (XPAR:ALRFG) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Racing Force SpA (XPAR:ALRFG) » Definitions » Inventory Turnover
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Traded in Other Exchanges
RFG:Italy
Address
via Bazzano 5, Ronco Scrivia, Genoa, ITA, 16019
Website
https://www.racingforce.com
Racing Force SpA is engaged in the field of design and manufacture of motorsport safety products. Its product range spans from suits, gloves, shoes, seats, harnesses, helmets, rollbars, racing nets, steering wheels, fire extinguisher systems, and intercoms, to other accessories strictly related to the motorsport industry.

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