POSCO Holdings (POSCO Holdings) Inventory Turnover

: 1.27 (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. POSCO Holdings's Cost of Goods Sold for the three months ended in Dec. 2023 was $13,466 Mil. POSCO Holdings's Average Total Inventories for the quarter that ended in Dec. 2023 was $10,604 Mil. POSCO Holdings's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.27.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. POSCO Holdings's Days Inventory for the three months ended in Dec. 2023 was 71.85.

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. POSCO Holdings's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.74.

POSCO Holdings Inventory Turnover Historical Data

The historical data trend for POSCO Holdings'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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POSCO Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

4.88

5.26

4.84

4.59

4.70

POSCO Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover																1.18	1.15	1.21	1.15	1.27

POSCO Holdings Inventory Turnover Calculation

POSCO Holdings'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 )
=	54209.285	/ (	(12472.067	+	10599.181)	/	2 )
=	54209.285	/	11535.624
=	4.70

POSCO Holdings'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 )
=	13466.433	/ (	(10608.549	+	10599.181)	/	2 )
=	13466.433	/	10603.865
=	1.27

POSCO Holdings (NYSE:PKX) 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.

POSCO Holdings'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
	=	10603.865	/	13466.433	*	365 / 4
	=	71.85

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.

POSCO Holdings'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 )
	=	10603.865	/	14308.644
	=	0.74

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.

POSCO Holdings Inventory Turnover Related Terms

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POSCO Holdings (POSCO Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » POSCO Holdings Inc (NYSE:PKX) » Definitions » Inventory Turnover

Traded in Other Exchanges

005490:Korea PKX:Germany PKX:Germany P1KX34:Brazil

Address

POSCO Center, 440 Teheran-ro, Gangnam-gu, Seoul, KOR, 06194

Website

https://www.posco.co.kr

POSCO Holdings Inc is a holding company and operates through its subsidiaries. The company's operating segments are 1) Steel Segment includes the production and sale of steel products. 2) Green Infrastructure Business includes the provision of infrastructure and related services. The segment is divided into three operations, Trading Segment consists trading and natural resources development activities. Construction Segment consists planning, designing and construction of industrial plants, civil engineering projects and buildings. The energy and Other Segment consists power generation and information technology and operational technology services. 3) Green Materials and Energy Segment include manufacturing and sale of energy-related and other industrial materials, 4) Others Segment.