JD.com (JD.com) Inventory Turnover

: 4.00 (As of Dec. 2023)

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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. JD.com's Cost of Goods Sold for the three months ended in Dec. 2023 was $36,774 Mil. JD.com's Average Total Inventories for the quarter that ended in Dec. 2023 was $9,194 Mil. JD.com's Inventory Turnover for the quarter that ended in Dec. 2023 was 4.00.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. JD.com's Days Inventory for the three months ended in Dec. 2023 was 22.81.

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. JD.com's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.21.

JD.com Inventory Turnover Historical Data

The historical data trend for JD.com'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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JD.com Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

9.58

11.27

12.37

11.19

12.51

JD.com Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover																3.40	2.95	3.81	3.23	4.00

JD.com Inventory Turnover Calculation

JD.com'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 )
=	129542.31	/ (	(11180.774	+	9531.666)	/	2 )
=	129542.31	/	10356.22
=	12.51

JD.com'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 )
=	36774.18	/ (	(8857.068	+	9531.666)	/	2 )
=	36774.18	/	9194.367
=	4.00

JD.com (NAS:JD) 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.

JD.com'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
	=	9194.367	/	36774.18	*	365 / 4
	=	22.81

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.

JD.com'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 )
	=	9194.367	/	42866.726
	=	0.21

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.

JD.com Inventory Turnover Related Terms

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JD.com (JD.com) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » JD.com Inc (NAS:JD) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

JDCMF:USA JD:Mexico 09618:Hong Kong 0JOQ:UK 013C:Germany 013C:Germany 013A:Germany 013A:Germany 013A:Germany JDCO34:Brazil JD:Austria JD:Argentina

Address

No. 18 Kechuang 11 Street, 20th Floor, Building A, Yizhuang Economic and Technological Development Zo, Daxing District, Beijing, CHN, 101111

Website

https://www.jd.com

JD.com is a leading e-commerce platform with its 2022 China GMV being similar to Pinduoduo (GMV not reported), on our estimate, but still lower than Alibaba. it offers a wide selection of authentic products with speedy and reliable delivery. The company has built its own nationwide fulfilment infrastructure and last-mile delivery network, staffed by its own employees, which supports both its online direct sales, its online marketplace and omnichannel businesses.