Reliance Industries (WBO:RLI) Inventory Turnover : 1.09 (As of Mar. 2024)

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What is Reliance Industries 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. Reliance Industries's Cost of Goods Sold for the three months ended in Mar. 2024 was €18,510 Mil. Reliance Industries's Average Total Inventories for the quarter that ended in Mar. 2024 was €16,929 Mil. Reliance Industries's Inventory Turnover for the quarter that ended in Mar. 2024 was 1.09.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Reliance Industries's Days Inventory for the three months ended in Mar. 2024 was 83.46.

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. Reliance Industries's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.65.

Reliance Industries Inventory Turnover Historical Data

The historical data trend for Reliance Industries'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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Reliance Industries Inventory Turnover Chart

Reliance Industries Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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6.24

4.25

5.40

4.97

4.30

Reliance Industries 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															1.06	1.01	1.13	1.07	1.09

Reliance Industries Inventory Turnover Calculation

Reliance Industries'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 )
=	70497.607	/ (	(15895.592	+	16929.177)	/	2 )
=	70497.607	/	16412.3845
=	4.30

Reliance Industries's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	18509.729	/ (	(0	+	16929.177)	/	1 )
=	18509.729	/	16929.177
=	1.09

Reliance Industries (WBO:RLI) 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.

Reliance Industries's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	16929.177	/	18509.729	*	365 / 4
	=	83.46

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.

Reliance Industries's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	16929.177	/	26211.358
	=	0.65

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.

Reliance Industries Inventory Turnover Related Terms

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Reliance Industries (WBO:RLI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Reliance Industries Ltd (WBO:RLI) » Definitions » Inventory Turnover

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RELIANCE:India 500325:India RIGDl:UK RIGD:UK RLI:Germany

Address

222, Nariman Point, 3rd Floor, Maker Chambers IV, Mumbai, MH, IND, 400021

Website

https://www.ril.com

Reliance Industries Ltd is engaged in hydrocarbon exploration and production, refining and marketing, petrochemicals, financial services, retail, and communications. The Group has five principal operating and reporting segments: Oil To Chemicals (O2C), Oil and Gas, Retail, Digital Services and Financial Services. Located in west India, Reliance's refineries produce a range of petroleum products that find use as fuel variants, feedstock, and fuel for power and cement plants. Fuels produced in refineries are exported to several countries and can be processed into any grade of gasoline or diesel. The Oil to Chemicals segment that derives the majority revenue includes Refining, Petrochemicals, fuel retailing through Reliance BP Mobility Limited, aviation fuel, and bulk wholesale marketing.