Highway Holdings (Highway Holdings) Inventory Turnover

: 1.94 (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. Highway Holdings's Cost of Goods Sold for the three months ended in Dec. 2023 was $3.23 Mil. Highway Holdings's Average Total Inventories for the quarter that ended in Dec. 2023 was $1.66 Mil. Highway Holdings's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.94.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Highway Holdings's Days Inventory for the three months ended in Dec. 2023 was 46.95.

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. Highway Holdings's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.40.

Highway Holdings Inventory Turnover Historical Data

The historical data trend for Highway Holdings'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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Highway Holdings Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Inventory Turnover

4.78

4.75

3.05

3.75

3.77

Highway Holdings Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Dec23
Inventory Turnover																0.91	1.03	0.99	0.66	1.94

Highway Holdings Inventory Turnover Calculation

Highway Holdings'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 )
=	7.101	/ (	(2.35	+	1.413)	/	2 )
=	7.101	/	1.8815
=	3.77

Highway Holdings'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: Jun. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	3.231	/ (	(1.513	+	1.812)	/	2 )
=	3.231	/	1.6625
=	1.94

Highway Holdings (NAS:HIHO) 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.

Highway Holdings'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
	=	1.6625	/	3.231	*	365 / 4
	=	46.95

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.

Highway Holdings'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 )
	=	1.6625	/	4.107
	=	0.40

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.

Highway Holdings Inventory Turnover Related Terms

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Highway Holdings (Highway Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Highway Holdings Ltd (NAS:HIHO) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

Level 18, Landmark North 39 Lung Sum Avenue, Suite No.1801, Sheung Shui, New Territories, Hong Kong, HKG

Website

https://www.highwayholdings.com

Highway Holdings Ltd is a holding company. The company is a manufacturer of metal, plastic, electric and electronic components for original equipment manufacturers (OEM) and contract manufacturers. Its operating segment includes Metal stamping and mechanical OEM and Electric OEM. The metal stamping segment focuses on the manufacturing and sale of metal parts and components. The company generates maximum revenue from the Metal stamping and mechanical OEM segment. Geographically, it derives a majority of its revenue from Europe and also has a presence in Hong Kong and China, North America, and Other Asian countries.

Executives

Zeff Capital, Lp

10 percent owner

400 S. MCCADDEN PL., LOS ANGELES CA 90020