Kao (KAOOY) Inventory Turnover : 0.94 (As of Dec. 2023)

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What is Kao 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. Kao's Cost of Goods Sold for the three months ended in Dec. 2023 was $1,765 Mil. Kao's Average Total Inventories for the quarter that ended in Dec. 2023 was $1,875 Mil. Kao's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.94.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Kao's Days Inventory for the three months ended in Dec. 2023 was 96.94.

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. Kao's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.66.

Kao Inventory Turnover Historical Data

The historical data trend for Kao'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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Kao Inventory Turnover Chart

Kao Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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4.33

4.08

3.80

3.65

3.47

Kao 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															0.99	0.82	0.83	0.82	0.94

Kao Inventory Turnover Calculation

Kao'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 )
=	6751.923	/ (	(2063.391	+	1832.284)	/	2 )
=	6751.923	/	1947.8375
=	3.47

Kao'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 )
=	1765.158	/ (	(1918.144	+	1832.284)	/	2 )
=	1765.158	/	1875.214
=	0.94

Kao (OTCPK:KAOOY) 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.

Kao'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
	=	1875.214	/	1765.158	*	365 / 4
	=	96.94

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.

Kao'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 )
	=	1875.214	/	2824.641
	=	0.66

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.

Kao Inventory Turnover Related Terms

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Kao (KAOOY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Kao Corp (OTCPK:KAOOY) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

KAOCF:USA 4452:Japan KAO:Germany

Address

14-10, Nihonbashi Kayabacho 1-chome, Chuo-ku, Tokyo, JPN, 103-8210

Website

http://www.kao.com

Kao is the largest household and personal care product manufacturer in Japan with a footprint across Asia, Europe, and the Americas. Japan remains its largest market, contributing about 60% of sales and an estimated 70% of profits with several leading brands including Attack and Biore. Initially a soap producer established in the 1890s, Kao has expanded into cosmetics, disposable hygiene products, and chemicals, in addition to its home care and toiletry products. Asia, the largest overseas market contributing 20% of group sales, is a key growth driver, led by expansion in China and Indonesia. It has also acquired several Western skin and haircare brands including Jergens, John Frieda, Curel, Molton Brown, and the latest, Oribe.

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