Tan Chong International (HKSE:00693) Inventory Turnover : 2.26 (As of Dec. 2023)

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What is Tan Chong International 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. Tan Chong International's Cost of Goods Sold for the six months ended in Dec. 2023 was HK$5,180 Mil. Tan Chong International's Average Total Inventories for the quarter that ended in Dec. 2023 was HK$2,290 Mil. Tan Chong International's Inventory Turnover for the quarter that ended in Dec. 2023 was 2.26.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Tan Chong International's Days Inventory for the six months ended in Dec. 2023 was 80.67.

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. Tan Chong International's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.35.

Tan Chong International Inventory Turnover Historical Data

The historical data trend for Tan Chong International'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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Tan Chong International Inventory Turnover Chart

Tan Chong International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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4.86

4.45

5.99

7.39

5.78

Tan Chong International Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															2.88	3.90	3.92	3.07	2.26

Tan Chong International Inventory Turnover Calculation

Tan Chong International's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	11124.068	/ (	(1573.408	+	2276.78)	/	2 )
=	11124.068	/	1925.094
=	5.78

Tan Chong International'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 )
=	5179.801	/ (	(2302.307	+	2276.78)	/	2 )
=	5179.801	/	2289.5435
=	2.26

Tan Chong International (HKSE:00693) 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.

Tan Chong International's Days Inventory for the six 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
	=	2289.5435	/	5179.801	*	365 / 2
	=	80.67

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.

Tan Chong International'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 )
	=	2289.5435	/	6509.954
	=	0.35

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.

Tan Chong International Inventory Turnover Related Terms

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Tan Chong International (HKSE:00693) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Tan Chong International Ltd (HKSE:00693) » Definitions » Inventory Turnover

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Traded in Other Exchanges

T15:Singapore

Address

6-8 Harbour Road, Unit 3001, 30th Floor, Shui On Centre, Wanchai, Hong Kong, HKG

Website

https://www.tanchong.com

Tan Chong International Ltd is an automobile dealer. It offers vehicles of Nissan brand in Singapore, Hong Kong, China and Thailand. The company has five business lines namely, Motor vehicle distribution and dealership business, Heavy commercial vehicle and industrial equipment distribution business, Property rentals and development, Transportation and Other operations which include investment holding, hire purchase financing, provision of workshop services and the manufacturing of vehicle seats. The company generates the majority of revenue from Motor vehicle distribution and dealership business.

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