NetEase (NetEase) Inventory Turnover

: 14.72 (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. NetEase's Cost of Goods Sold for the three months ended in Dec. 2023 was $1,445 Mil. NetEase's Average Total Inventories for the quarter that ended in Dec. 2023 was $98 Mil. NetEase's Inventory Turnover for the quarter that ended in Dec. 2023 was 14.72.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. NetEase's Days Inventory for the three months ended in Dec. 2023 was 6.20.

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. NetEase's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.03.

NetEase Inventory Turnover Historical Data

The historical data trend for NetEase'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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NetEase Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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31.89

57.90

52.74

42.67

47.17

NetEase 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															12.61	10.92	11.22	13.34	14.72

NetEase Inventory Turnover Calculation

NetEase'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 )
=	5658.772	/ (	(142.524	+	97.389)	/	2 )
=	5658.772	/	119.9565
=	47.17

NetEase'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 )
=	1444.642	/ (	(98.927	+	97.389)	/	2 )
=	1444.642	/	98.158
=	14.72

NetEase (NAS:NTES) 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.

NetEase'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
	=	98.158	/	1444.642	*	365 / 4
	=	6.20

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.

NetEase'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 )
	=	98.158	/	3801.037
	=	0.03

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.

NetEase Inventory Turnover Related Terms

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NetEase (NetEase) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » NetEase Inc (NAS:NTES) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

NETTF:USA NTESN:Mexico 09999:Hong Kong 0K6G:UK 4Y01:Germany 4Y01:Germany NEH:Germany NEH:Germany NETE34:Brazil NTES:Austria

Address

No. 599 Wangshang Road, NetEase Building, Binjiang District, Hangzhou, CHN, 310052

Website

https://ir.netease.com

NetEase, which started on an internet portal service in 1997, is a leading online services provider in China. Its key services include online/mobile games, cloud music, media, advertising, email, live streaming, online education, and e-commerce. The company develops and operates some of the China's most popular PC client and mobile games, and it partners with global leading game developers, such as Blizzard Entertainment and Mojang (a Microsoft subsidiary).