FAR Chemical Industry (DHA:FARCHEM) Inventory Turnover : 0.80 (As of Sep. 2023)

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What is FAR Chemical Industry 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. FAR Chemical Industry's Cost of Goods Sold for the three months ended in Sep. 2023 was BDT257.2 Mil. FAR Chemical Industry's Average Total Inventories for the quarter that ended in Sep. 2023 was BDT322.3 Mil. FAR Chemical Industry's Inventory Turnover for the quarter that ended in Sep. 2023 was 0.80.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. FAR Chemical Industry's Days Inventory for the three months ended in Sep. 2023 was 114.33.

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. FAR Chemical Industry's Inventory-to-Revenue for the quarter that ended in Sep. 2023 was 1.12.

FAR Chemical Industry Inventory Turnover Historical Data

The historical data trend for FAR Chemical Industry'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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FAR Chemical Industry Inventory Turnover Chart

FAR Chemical Industry Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Inventory Turnover

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2.13

1.33

2.18

8.96

4.54

FAR Chemical Industry Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Inventory Turnover	Get a 7-Day Free Trial															-	0.28	1.02	1.12	0.80

FAR Chemical Industry Inventory Turnover Calculation

FAR Chemical Industry'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 )
=	749.574	/ (	(0.057	+	330.463)	/	2 )
=	749.574	/	165.26
=	4.54

FAR Chemical Industry's Inventory Turnover for the quarter that ended in Sep. 2023 is calculated as

	Inventory Turnover (Q: Sep. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2023 )	/ (	(Total Inventories (Q: Jun. 2023 )	+	Total Inventories (Q: Sep. 2023 ))	/	count )
=	257.241	/ (	(330.463	+	314.124)	/	2 )
=	257.241	/	322.2935
=	0.80

FAR Chemical Industry (DHA:FARCHEM) 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.

FAR Chemical Industry's Days Inventory for the three months ended in Sep. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2023 )	/	Cost of Goods Sold (Q: Sep. 2023 )	*	Days in Period
	=	322.2935	/	257.241	*	365 / 4
	=	114.33

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.

FAR Chemical Industry's Inventory to Revenue for the quarter that ended in Sep. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	322.2935	/	288.626
	=	1.12

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.

FAR Chemical Industry Inventory Turnover Related Terms

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FAR Chemical Industry (DHA:FARCHEM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » FAR Chemical Industry Ltd (DHA:FARCHEM) » Definitions » Inventory Turnover

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Traded in Other Exchanges

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Address

House No. 11 (Floor: 5A), Road No. 12, Block-F, Niketon, Gulshan-1, Dhaka, BGD, 1212

Website

https://www.farchemicalbd.com

FAR Chemical Industry Ltd operates in the textile dyeing chemical industry. The principal activities of the company are to manufacture and export chemical products to different export-oriented textiles, dyeing, and apparel industries. Its product range consists of Softening agent, Scouring agent, Anti-foaming agent, Leveling agent, Fixing agent, Retarding agent, Stabilizer, Bleaching agent, and other chemical products.

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