Merck KGaA (Merck KGaA) Inventory Turnover : 0.49 (As of Dec. 2023)

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What is Merck KGaA 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. Merck KGaA's Cost of Goods Sold for the three months ended in Dec. 2023 was $2,538 Mil. Merck KGaA's Average Total Inventories for the quarter that ended in Dec. 2023 was $5,181 Mil. Merck KGaA's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.49.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Merck KGaA's Days Inventory for the three months ended in Dec. 2023 was 186.30.

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. Merck KGaA's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.91.

Merck KGaA Inventory Turnover Historical Data

The historical data trend for Merck KGaA'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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Merck KGaA Inventory Turnover Chart

Merck KGaA Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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1.95

2.15

1.97

1.94

1.88

Merck KGaA 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															0.50	0.42	0.44	0.43	0.49

Merck KGaA Inventory Turnover Calculation

Merck KGaA'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 )
=	9378.408	/ (	(4906.78	+	5056.707)	/	2 )
=	9378.408	/	4981.7435
=	1.88

Merck KGaA'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 )
=	2537.623	/ (	(5305.229	+	5056.707)	/	2 )
=	2537.623	/	5180.968
=	0.49

Merck KGaA (OTCPK:MKKGY) 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.

Merck KGaA'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
	=	5180.968	/	2537.623	*	365 / 4
	=	186.30

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.

Merck KGaA'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 )
	=	5180.968	/	5697.928
	=	0.91

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.

Merck KGaA Inventory Turnover Related Terms

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Merck KGaA (Merck KGaA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Merck KGaA (OTCPK:MKKGY) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

MKGAF:USA MRK:Italy MRKd:UK 0O14:UK MRK:Germany MRCK:Austria

Address

Frankfurter Strasse 250, Darmstadt, HE, DEU, 64293

Website

https://www.emdgroup.com

Merck KGaA operates in three main segments: life sciences, performance materials, and healthcare. The life sciences segment (47% of 2022 sales) primarily provides laboratory consumables and services to researchers in academia and applied fields, including the biopharmaceutical industry. In the healthcare segment (35%), Merck develops, manufactures, and sells branded pharmaceuticals with significant therapeutic concentrations in oncology, multiple sclerosis, and fertility. In its electronics segment (18%), the company offers specialty materials to manufacture a variety of products, such as semiconductors, flat-screen televisions, automobiles, and cosmetics. In 1995, the E. Merck KG family publicly sold part of the company, resulting in the current 30% public ownership of the firm.