Brother Industries (Brother Industries) Inventory Turnover

: 0.56 (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. Brother Industries's Cost of Goods Sold for the three months ended in Dec. 2023 was $850 Mil. Brother Industries's Average Total Inventories for the quarter that ended in Dec. 2023 was $1,519 Mil. Brother Industries's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.56.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Brother Industries's Days Inventory for the three months ended in Dec. 2023 was 163.14.

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. Brother Industries's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 1.03.

Brother Industries Inventory Turnover Historical Data

The historical data trend for Brother Industries'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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Brother Industries Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Inventory Turnover

3.12

2.93

2.89

2.68

2.40

Brother Industries Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover																0.62	0.55	0.48	0.48	0.56

Brother Industries Inventory Turnover Calculation

Brother Industries'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 )
=	3708.409	/ (	(1430.146	+	1661.872)	/	2 )
=	3708.409	/	1546.009
=	2.40

Brother Industries'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 )
=	849.713	/ (	(1568.677	+	1469.543)	/	2 )
=	849.713	/	1519.11
=	0.56

Brother Industries (OTCPK:BRTHY) 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.

Brother Industries'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
	=	1519.11	/	849.713	*	365 / 4
	=	163.14

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.

Brother Industries'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 )
	=	1519.11	/	1480.28
	=	1.03

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.

Brother Industries Inventory Turnover Related Terms

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Brother Industries (Brother Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Brother Industries Ltd (OTCPK:BRTHY) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

BRTHF:USA 6448:Japan

Address

15-1, Naeshiro-cho, Mizuho-ku, Nagoya, JPN, 467-8561

Website

http://www.brother.com

Brother Industries Ltd is engaged in the manufacture and sale of office equipment and supplies. The company offers products such as printing equipment, home sewing machines, industrial sewing machines, machine tools, and online karaoke/content-delivery systems. The group consists of five segments, Printing and Solutions; Personal and Home; Machinery and Solution; Network and Contents; and Industrial Part.

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