Ashtead Group (Ashtead Group) Inventory Turnover : 1.54 (As of Jan. 2024)

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What is Ashtead Group 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. Ashtead Group's Cost of Goods Sold for the three months ended in Jan. 2024 was $287 Mil. Ashtead Group's Average Total Inventories for the quarter that ended in Jan. 2024 was $186 Mil. Ashtead Group's Inventory Turnover for the quarter that ended in Jan. 2024 was 1.54.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Ashtead Group's Days Inventory for the three months ended in Jan. 2024 was 59.30.

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. Ashtead Group's Inventory-to-Revenue for the quarter that ended in Jan. 2024 was 0.07.

Ashtead Group Inventory Turnover Historical Data

The historical data trend for Ashtead Group'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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Ashtead Group Inventory Turnover Chart

Ashtead Group Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

Inventory Turnover

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6.96

6.35

7.24

6.96

6.34

Ashtead Group Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Inventory Turnover	Get a 7-Day Free Trial															1.25	1.33	1.64	1.75	1.54

Ashtead Group Inventory Turnover Calculation

Ashtead Group's Inventory Turnover for the fiscal year that ended in Apr. 2023 is calculated as

	Inventory Turnover (A: Apr. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Apr. 2023 )	/ (	(Total Inventories (A: Apr. 2022 )	+	Total Inventories (A: Apr. 2023 ))	/	count )
=	1109.1	/ (	(168.5	+	181.3)	/	2 )
=	1109.1	/	174.9
=	6.34

Ashtead Group's Inventory Turnover for the quarter that ended in Jan. 2024 is calculated as

	Inventory Turnover (Q: Jan. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jan. 2024 )	/ (	(Total Inventories (Q: Oct. 2023 )	+	Total Inventories (Q: Jan. 2024 ))	/	count )
=	286.9	/ (	(180.4	+	192.5)	/	2 )
=	286.9	/	186.45
=	1.54

Ashtead Group (OTCPK:ASHTY) 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.

Ashtead Group's Days Inventory for the three months ended in Jan. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jan. 2024 )	/	Cost of Goods Sold (Q: Jan. 2024 )	*	Days in Period
	=	186.45	/	286.9	*	365 / 4
	=	59.30

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.

Ashtead Group's Inventory to Revenue for the quarter that ended in Jan. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	186.45	/	2657.8
	=	0.07

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.

Ashtead Group Inventory Turnover Related Terms

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Ashtead Group (Ashtead Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Ashtead Group PLC (OTCPK:ASHTY) » Definitions » Inventory Turnover

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Traded in Other Exchanges

ASHTF:USA AHTl:UK AHT:UK 0LC:Germany 0LC:Germany

Address

100 Cheapside, London, GBR, EC2V 6DT

Website

https://www.ashtead-group.com

Ashtead is an equipment rental business with operations in the U.S., Canada, and United Kingdom, operating under the Sunbelt Rentals brand. Earnings are mostly derived from the U.S. where Sunbelt enjoy a number-two market position with a 13% share in a highly fragmented market consisting of national, regional, and independent competitors. Ashtead rents a range of construction, industrial, and general equipment such as aerial lifts, hand-held tools, and forklifts across its more than 1,550 rental stores worldwide.