Shin-Etsu Chemical Co (Shin-Etsu Chemical Co) Inventory Turnover : 0.56 (As of Dec. 2023)

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What is Shin-Etsu Chemical Co 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. Shin-Etsu Chemical Co's Cost of Goods Sold for the three months ended in Dec. 2023 was $2,760 Mil. Shin-Etsu Chemical Co's Average Total Inventories for the quarter that ended in Dec. 2023 was $4,939 Mil. Shin-Etsu Chemical Co's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.56.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Shin-Etsu Chemical Co's Days Inventory for the three months ended in Dec. 2023 was 163.28.

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. Shin-Etsu Chemical Co's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 1.13.

Shin-Etsu Chemical Co Inventory Turnover Historical Data

The historical data trend for Shin-Etsu Chemical Co'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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Shin-Etsu Chemical Co Inventory Turnover Chart

Shin-Etsu Chemical Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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2.88

2.60

2.83

2.66

2.02

Shin-Etsu Chemical Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															0.60	0.50	0.49	0.56	0.54

Shin-Etsu Chemical Co Inventory Turnover Calculation

Shin-Etsu Chemical Co's Inventory Turnover for the fiscal year that ended in Mar. 2024 is calculated as

	Inventory Turnover (A: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2024 )	/ (	(Total Inventories (A: Mar. 2023 )	+	Total Inventories (A: Mar. 2024 ))	/	count )
=	10036.991	/ (	(5150.792	+	4810.124)	/	2 )
=	10036.991	/	4980.458
=	2.02

Shin-Etsu Chemical Co'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 )
=	2760.167	/ (	(4867.828	+	5010.31)	/	2 )
=	2760.167	/	4939.069
=	0.56

Shin-Etsu Chemical Co (OTCPK:SHECF) 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.

Shin-Etsu Chemical Co'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
	=	4939.069	/	2760.167	*	365 / 4
	=	163.28

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.

Shin-Etsu Chemical Co'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 )
	=	4939.069	/	4358.206
	=	1.13

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.

Shin-Etsu Chemical Co Inventory Turnover Related Terms

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Shin-Etsu Chemical Co (Shin-Etsu Chemical Co) Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Shin-Etsu Chemical Co Ltd (OTCPK:SHECF) » Definitions » Inventory Turnover

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Traded in Other Exchanges

SHECY:USA 4063:Japan SEH:Germany

Address

6-1, Ohtemachi 2-chome, Chiyoda-ku, Tokyo, JPN, 100-0004

Website

http://www.shinetsu.co.jp

Shin-Etsu Chemical Co Ltd is a Japan-based company primarily engaged in chemical business. The company operates in six business segments namely Poly Vinyl Chloride, Specialty Chemicals, Silicon, Semiconductor Silicon, Electronic and Functional Materials and Diversified business. It derives majority of revenue through Poly Vinyl Chloride segment which manufactures and sells vinyl chloride, caustic soda products, chloromethane and methanol. The group is also involved in manufacturing and selling of various other chemical products such as Polyvinyl alcohol, Synthetic pheromones, Rare-earth magnets for electronics industry and general applications, Photoresists, Photomask blanks and others. Geographically, it operates from the market of Japan and its business is amplifying across the globe.

Shin-Etsu Chemical Co (Shin-Etsu Chemical Co) Headlines

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