Ashok Leyland (BOM:500477) Inventory Turnover : 1.75 (As of Dec. 2023)

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What is Ashok Leyland 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. Ashok Leyland's Cost of Goods Sold for the three months ended in Dec. 2023 was ₹69,531 Mil. Ashok Leyland's Average Total Inventories for the quarter that ended in Dec. 2023 was ₹39,845 Mil. Ashok Leyland's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.75.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Ashok Leyland's Days Inventory for the three months ended in Dec. 2023 was 52.29.

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. Ashok Leyland's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.36.

Ashok Leyland Inventory Turnover Historical Data

The historical data trend for Ashok Leyland'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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Ashok Leyland Inventory Turnover Chart

Ashok Leyland Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Inventory Turnover

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8.25

5.83

6.00

7.02

9.68

Ashok Leyland Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															2.23	2.66	1.82	1.87	1.75

Ashok Leyland Inventory Turnover Calculation

Ashok Leyland's Inventory Turnover for the fiscal year that ended in Mar. 2023 is calculated as

	Inventory Turnover (A: Mar. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2023 )	/ (	(Total Inventories (A: Mar. 2022 )	+	Total Inventories (A: Mar. 2023 ))	/	count )
=	289355.5	/ (	(25405.5	+	34404.3)	/	2 )
=	289355.5	/	29904.9
=	9.68

Ashok Leyland'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 )
=	69530.5	/ (	(39844.6	+	0)	/	1 )
=	69530.5	/	39844.6
=	1.75

Ashok Leyland (BOM:500477) 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.

Ashok Leyland'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
	=	39844.6	/	69530.5	*	365 / 4
	=	52.29

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.

Ashok Leyland'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 )
	=	39844.6	/	110448.1
	=	0.36

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.

Ashok Leyland Inventory Turnover Related Terms

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Ashok Leyland (BOM:500477) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » Ashok Leyland Ltd (BOM:500477) » Definitions » Inventory Turnover

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ASHOKLEY:India

Address

No. 1, Sardar Patel Road, Guindy, Chennai, TN, IND, 600 032

Website

https://www.ashokleyland.com

Ashok Leyland Ltd is an automobile manufacturing company. The company manufactures commercial vehicles, engines, spare parts, and accessories, with the vast majority of revenue derived from commercial vehicle sales. Ashok Leyland organizes its business into two segments: Commercial vehicles and Financial Services. The company derives more than half of its consolidated revenue domestically.

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