Mitsubishi Heavy Industries (Mitsubishi Heavy Industries) Inventory Turnover : 0.93 (As of Dec. 2023)

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What is Mitsubishi Heavy Industries 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. Mitsubishi Heavy Industries's Cost of Goods Sold for the three months ended in Dec. 2023 was $6,530 Mil. Mitsubishi Heavy Industries's Average Total Inventories for the quarter that ended in Dec. 2023 was $7,021 Mil. Mitsubishi Heavy Industries's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.93.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Mitsubishi Heavy Industries's Days Inventory for the three months ended in Dec. 2023 was 98.10.

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. Mitsubishi Heavy Industries's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.85.

Mitsubishi Heavy Industries Inventory Turnover Historical Data

The historical data trend for Mitsubishi Heavy Industries'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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Mitsubishi Heavy Industries Inventory Turnover Chart

Mitsubishi Heavy Industries Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Inventory Turnover

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4.34

4.62

4.31

4.06

3.87

Mitsubishi Heavy Industries 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															0.95	1.13	0.83	0.87	0.93

Mitsubishi Heavy Industries Inventory Turnover Calculation

Mitsubishi Heavy Industries'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 )
=	25719.507	/ (	(6734.85	+	6560.301)	/	2 )
=	25719.507	/	6647.5755
=	3.87

Mitsubishi Heavy Industries'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 )
=	6530.117	/ (	(6804.66	+	7236.478)	/	2 )
=	6530.117	/	7020.569
=	0.93

Mitsubishi Heavy Industries (OTCPK:MHVYF) 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.

Mitsubishi Heavy Industries'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
	=	7020.569	/	6530.117	*	365 / 4
	=	98.10

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.

Mitsubishi Heavy Industries'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 )
	=	7020.569	/	8274.633
	=	0.85

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.

Mitsubishi Heavy Industries Inventory Turnover Related Terms

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Mitsubishi Heavy Industries (Mitsubishi Heavy Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Mitsubishi Heavy Industries Ltd (OTCPK:MHVYF) » Definitions » Inventory Turnover

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Traded in Other Exchanges

7011:Japan MIH:Germany

Address

2-3 Marunouchi 3-chome, Chiyoda-ku, Tokyo, JPN, 100-8332

Website

https://www.mhi.com

Mitsubishi Heavy Industries Ltd is engaged in the manufacturing and sale of ships, industrial machinery, and aircraft. The segments of the company are Energy, Plants and Infrastructure Systems, Logistics, Thermal and Drive Systems, and Aircraft, Defense, and Space. The company earns maximum revenue from the energy segment which handles clean gas, steam power systems, nuclear power systems, compressors, and marine machinery. The Plants and Infrastructure Systems segment of the company deals with commercial ships, engineering, machine tools, and machinery systems; Logistics, Thermal, and Drive Systems provide material handling systems, engines, HVAC systems, and automotive air-conditioners; and the Aircraft, Defense, and Space cover commercial aircraft, defense aircraft, and others.