Axalta Coating Systems (Axalta Coating Systems) Inventory Turnover

: 1.17 (As of Dec. 2023)

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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. Axalta Coating Systems's Cost of Goods Sold for the three months ended in Dec. 2023 was $874 Mil. Axalta Coating Systems's Average Total Inventories for the quarter that ended in Dec. 2023 was $746 Mil. Axalta Coating Systems's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.17.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Axalta Coating Systems's Days Inventory for the three months ended in Dec. 2023 was 77.86.

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. Axalta Coating Systems's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.57.

Axalta Coating Systems Inventory Turnover Historical Data

The historical data trend for Axalta Coating Systems'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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Axalta Coating Systems Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

4.84

4.27

4.86

4.62

4.54

Axalta Coating Systems Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover																1.04	1.11	1.16	1.17	1.17

Axalta Coating Systems Inventory Turnover Calculation

Axalta Coating Systems'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 )
=	3565.6	/ (	(829.6	+	741.1)	/	2 )
=	3565.6	/	785.35
=	4.54

Axalta Coating Systems'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: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	873.8	/ (	(750	+	741.1)	/	2 )
=	873.8	/	745.55
=	1.17

Axalta Coating Systems (NYSE:AXTA) 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.

Axalta Coating Systems'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
	=	745.55	/	873.8	*	365 / 4
	=	77.86

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.

Axalta Coating Systems'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 )
	=	745.55	/	1297.3
	=	0.57

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.

Axalta Coating Systems Inventory Turnover Related Terms

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Axalta Coating Systems (Axalta Coating Systems) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Axalta Coating Systems Ltd (NYSE:AXTA) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

9AX:Germany 9AX:Germany

Address

50 Applied Bank Boulevard, Suite 300, Glen Mills, PA, USA, 19342

Website

https://www.axalta.com

Axalta Coating Systems Ltd is a manufacturer, marketer and distributor of high-performance coatings systems. It operates in two segments, The Performance Coatings segment provides liquid and powder coatings solutions to a fragmented and local customer base. Its end markets include refinish and industrial. The Mobility Coatings segment relates to the provision of coating technologies to original equipment manufacturers of light and commercial vehicles. The company operates in the geographic areas of North America, EMEA countries, Asia-Pacific and Latin America.

Executives

Hadi Awada	officer: SVP, Global Trans. Coatings	AXALTA COATING SYSTEMS, 2001 MARKET STREET 36TH FLOOR, PHILADELPHIA PA 19103
Brian A Berube	officer: SVP and General Counsel	C/O CABOT CORPORATION, TWO SEAPORT LANE, SUITE 1300, BOSTON MA 02210
Anthony Massey	officer: VP, Global Controller, PAO	AXALTA COATING SYSTEMS, 2001 MARKET STREET, 36TH FLOOR, PHILADELPHIA PA 19103
Robert M Mclaughlin	director	C/O AIRGAS, INC., 259 NORTH RADNOR-CHESTER RD, RADNOR PA 19087
Mary Slagle Zappone	director	10900 NE 8TH ST., STE. 800, BELLEVUE WA 98004
Amy Tufano	officer: SVP & CHRO	50 APPLIED BANK BLVD., SUITE 300, GLEN MILLS PA 19342
Deborah J. Kissire	director	210 E. EARLL DRIVE, PHOENIX AZ 85012
William M Cook	director	1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Kevin M Stein	director	TRANSDIGM GROUP INCORPORATED, 1301 EAST 9TH STREET, SUITE 3000, CLEVELAND OH 44114
Anderson Carl Douglas Ii	officer: SVP and CFO	C/O XPO, INC., FIVE AMERICAN LANE, GREENWICH CT 06831
Jacqueline Scanlan	officer: SVP & CHRO	HAEMONETICS CORPORATION, 400 WOOD ROAD, BRAINTREE MA 02184
Chris Villavarayan	director, officer: CEO & President	C/O MERITOR, INC., 2135 WEST MAPLE ROAD, TROY MI 48084
Jan Bertsch	director	3850 HAMLIN ROAD, AUBURN HILLS MI 48326
Troy D. Weaver	officer: SVP, Global Refinish	AXALTA COATING SYSTEMS, 2001 MARKET STREET 36TH FLOOR, PHILADELPHIA PA 19103
Barry S Snyder	officer: SVP,Chief Ops & Sup Chain Offc	1200 WILLOW LAKE BOULEVARD, P.O. BOX 64683, ST. PAUL MN 55164-0683