Sasol (JSE:SOL) Inventory Turnover : 1.75 (As of Jun. 2023)

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What is Sasol 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. Sasol's Cost of Goods Sold for the six months ended in Jun. 2023 was R77,080 Mil. Sasol's Average Total Inventories for the quarter that ended in Jun. 2023 was R44,013 Mil. Sasol's Inventory Turnover for the quarter that ended in Jun. 2023 was 1.75.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Sasol's Days Inventory for the six months ended in Jun. 2023 was 104.21.

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. Sasol's Inventory-to-Revenue for the quarter that ended in Jun. 2023 was 0.32.

Sasol Inventory Turnover Historical Data

The historical data trend for Sasol'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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Sasol Inventory Turnover Chart

Sasol Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Inventory Turnover

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3.67

3.91

3.58

3.90

4.05

Sasol Semi-Annual Data
	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
Inventory Turnover	Get a 7-Day Free Trial															1.87	1.91	1.94	2.11	1.75

Sasol Inventory Turnover Calculation

Sasol'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 )
=	168788	/ (	(41110	+	42205)	/	2 )
=	168788	/	41657.5
=	4.05

Sasol's Inventory Turnover for the quarter that ended in Jun. 2023 is calculated as

	Inventory Turnover (Q: Jun. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jun. 2023 )	/ (	(Total Inventories (Q: Dec. 2022 )	+	Total Inventories (Q: Jun. 2023 ))	/	count )
=	77080	/ (	(45821	+	42205)	/	2 )
=	77080	/	44013
=	1.75

Sasol (JSE:SOL) 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.

Sasol's Days Inventory for the six months ended in Jun. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2023 )	/	Cost of Goods Sold (Q: Jun. 2023 )	*	Days in Period
	=	44013	/	77080	*	365 / 2
	=	104.21

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.

Sasol's Inventory to Revenue for the quarter that ended in Jun. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2023 )	/	Revenue (Q: Jun. 2023 )
	=	44013	/	137946
	=	0.32

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.

Sasol Inventory Turnover Related Terms

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Sasol (JSE:SOL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Sasol Ltd (JSE:SOL) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

SOLBE1:South Africa SASOF:USA SSL:USA SAOA:Germany SAO:Germany SAOA:Germany SAO:Germany

Address

50 Katherine Street, Sasol Place, Sandton, Johannesburg, GT, ZAF, 2196

Website

https://www.sasol.com

Sasol Ltd operates as a vertically integrated chemicals and energy company through its two main segments: Energy business and Chemical business. It generates maximum revenue from the Chemicals segment. The company operates coal mines and its upstream interests in oil and gas, both of which are used as feedstock in the company's energy and chemicals operations. Sasol markets commodity and performance chemicals, sells liquid fuel products, and markets, distributes and transports pipeline gas. Geographically the company generates the majority of its revenue from South Africa.