Mount Gibson Iron (ASX:MGX) Inventory Turnover : 3.19 (As of Dec. 2023)

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What is Mount Gibson Iron 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. Mount Gibson Iron's Cost of Goods Sold for the six months ended in Dec. 2023 was A$233.0 Mil. Mount Gibson Iron's Average Total Inventories for the quarter that ended in Dec. 2023 was A$73.0 Mil. Mount Gibson Iron's Inventory Turnover for the quarter that ended in Dec. 2023 was 3.19.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Mount Gibson Iron's Days Inventory for the six months ended in Dec. 2023 was 57.16.

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. Mount Gibson Iron's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.18.

Mount Gibson Iron Inventory Turnover Historical Data

The historical data trend for Mount Gibson Iron'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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Mount Gibson Iron Inventory Turnover Chart

Mount Gibson Iron Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Inventory Turnover

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8.40

9.86

5.84

6.44

4.61

Mount Gibson Iron Semi-Annual Data
	Jun14	Dec14	Jun15	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															3.24	3.40	2.03	1.91	3.19

Mount Gibson Iron Inventory Turnover Calculation

Mount Gibson Iron's Inventory Turnover for the fiscal year that ended in Jun. 2023 is calculated as

	Inventory Turnover (A: Jun. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jun. 2023 )	/ (	(Total Inventories (A: Jun. 2022 )	+	Total Inventories (A: Jun. 2023 ))	/	count )
=	315.761	/ (	(31.459	+	105.417)	/	2 )
=	315.761	/	68.438
=	4.61

Mount Gibson Iron'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 )
=	233.013	/ (	(105.417	+	40.548)	/	2 )
=	233.013	/	72.9825
=	3.19

Mount Gibson Iron (ASX:MGX) 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.

Mount Gibson Iron'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
	=	72.9825	/	233.013	*	365 / 2
	=	57.16

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.

Mount Gibson Iron'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 )
	=	72.9825	/	404.137
	=	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.

Mount Gibson Iron Inventory Turnover Related Terms

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Mount Gibson Iron (ASX:MGX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Mount Gibson Iron Ltd (ASX:MGX) » Definitions » Inventory Turnover

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MTGRY:USA MTGRF:USA

Address

2 Kings Park Road, Level 1, West Perth, Perth, WA, AUS, 6005

Website

https://www.mtgibsoniron.com.au

Mount Gibson Iron Ltd is a Western Australia-based iron ore mining company. The activities of the company involve mining, processing and direct shipment of hematite iron ore at the Koolan Island mine site in the Kimberley region of Western Australia; care and maintenance of the Shine hematite iron ore site and related infrastructure, rehabilitation works at the Extension Hill mine site and management of the Geraldton Port facilities in the Mid-West region of Western Australia; treasury management; and the pursuit of mineral resources acquisitions and investments. The company operates into two segments: Mid-West segment and Koolan Island segment. The company derives the majority of its revenue from Koolan Island.