Square Textiles (DHA:SQUARETEXT) Inventory Turnover : 1.01 (As of Dec. 2023)

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What is Square Textiles 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. Square Textiles's Cost of Goods Sold for the three months ended in Dec. 2023 was BDT4,735 Mil. Square Textiles's Average Total Inventories for the quarter that ended in Dec. 2023 was BDT4,698 Mil. Square Textiles's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.01.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Square Textiles's Days Inventory for the three months ended in Dec. 2023 was 90.54.

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. Square Textiles's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.88.

Square Textiles Inventory Turnover Historical Data

The historical data trend for Square Textiles'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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Square Textiles Inventory Turnover Chart

Square Textiles Annual Data

Trend

Dec12

Dec13

Dec14

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Inventory Turnover

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3.61

3.04

4.04

5.65

4.23

Square Textiles 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															1.30	0.85	1.27	0.87	1.01

Square Textiles Inventory Turnover Calculation

Square Textiles'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 )
=	14492.669	/ (	(2471.466	+	4384.063)	/	2 )
=	14492.669	/	3427.7645
=	4.23

Square Textiles'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 )
=	4735.178	/ (	(4293.184	+	5103.316)	/	2 )
=	4735.178	/	4698.25
=	1.01

Square Textiles (DHA:SQUARETEXT) 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.

Square Textiles'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
	=	4698.25	/	4735.178	*	365 / 4
	=	90.54

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.

Square Textiles'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 )
	=	4698.25	/	5312.784
	=	0.88

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.

Square Textiles Inventory Turnover Related Terms

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Square Textiles (DHA:SQUARETEXT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Square Textiles PLC (DHA:SQUARETEXT) » Definitions » Inventory Turnover

Traded in Other Exchanges

N/A

Address

Square Centre, 48 Mohakhali Commercial Area, Dhaka, BGD, 1212

Website

https://textile.squaregroup.com

Square Textiles PLC is engaged in developing, manufacturing, and marketing cotton/yarn for human as well as industrial use. The company produces cotton yarn, polyester, organic yarn, bamboo yarn and blended yarn mix of cotton, and polyester of different counts. The firm is based in Bangladesh.

Square Textiles (DHA:SQUARETEXT) Headlines

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