Algoma Steel Group (TSX:ASTL) Inventory Turnover : 0.73 (As of Dec. 2023)

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What is Algoma Steel Group 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. Algoma Steel Group's Cost of Goods Sold for the three months ended in Dec. 2023 was C$624 Mil. Algoma Steel Group's Average Total Inventories for the quarter that ended in Dec. 2023 was C$855 Mil. Algoma Steel Group's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.73.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Algoma Steel Group's Days Inventory for the three months ended in Dec. 2023 was 125.02.

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. Algoma Steel Group's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 1.39.

Algoma Steel Group Inventory Turnover Historical Data

The historical data trend for Algoma Steel Group'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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Algoma Steel Group Inventory Turnover Chart

Algoma Steel Group Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Inventory Turnover

4.66

3.84

5.12

3.97

Algoma Steel Group Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial											0.69	0.77	0.86	0.84	0.73

Algoma Steel Group Inventory Turnover Calculation

Algoma Steel Group's Inventory Turnover for the fiscal year that ended in Mar. 2023 is calculated as

	Inventory Turnover (A: Mar. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2023 )	/ (	(Total Inventories (A: Mar. 2022 )	+	Total Inventories (A: Mar. 2023 ))	/	count )
=	2388.7	/ (	(480	+	722.7)	/	2 )
=	2388.7	/	601.35
=	3.97

Algoma Steel Group'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 )
=	623.8	/ (	(822.7	+	886.6)	/	2 )
=	623.8	/	854.65
=	0.73

Algoma Steel Group (TSX:ASTL) 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.

Algoma Steel Group'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
	=	854.65	/	623.8	*	365 / 4
	=	125.02

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.

Algoma Steel Group'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 )
	=	854.65	/	615.4
	=	1.39

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.

Algoma Steel Group Inventory Turnover Related Terms

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Algoma Steel Group (TSX:ASTL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Algoma Steel Group Inc (TSX:ASTL) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

ASTL:USA 9ZY:Germany

Address

105 West Street, Sault Ste., Marie, ON, CAN, P6A 7B4

Website

https://www.algoma.com

Algoma Steel Group Inc is a Canadian company engaged in the production of clean and consistent light gauge steel. The company offers a range of hot and cold rolled steel sheet and plate products. The firm operates in a single segment of basic steel production including sheets, plates, slabs, and freights. The Company's revenue is generated from contracts to produce, ship, and deliver steel products Geographically it serves Canada, the United States, and the rest of the world, whilst driving key revenue from domestic sales. The company generates the majority of its revenue from the sale of Steel sheets and strips.