Michelin (XPAR:ML) Inventory Turnover : 1.77 (As of Dec. 2023)

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What is Michelin 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. Michelin's Cost of Goods Sold for the six months ended in Dec. 2023 was €10,186 Mil. Michelin's Average Total Inventories for the quarter that ended in Dec. 2023 was €5,770 Mil. Michelin's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.77.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Michelin's Days Inventory for the six months ended in Dec. 2023 was 103.38.

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. Michelin's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.40.

Michelin Inventory Turnover Historical Data

The historical data trend for Michelin'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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Michelin Inventory Turnover Chart

Michelin Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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3.63

3.41

3.71

3.68

3.47

Michelin Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															1.84	1.63	1.74	1.65	1.77

Michelin Inventory Turnover Calculation

Michelin'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 )
=	20395	/ (	(6318	+	5447)	/	2 )
=	20395	/	5882.5
=	3.47

Michelin'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: Jun. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	10186	/ (	(6093	+	5447)	/	2 )
=	10186	/	5770
=	1.77

Michelin (XPAR:ML) 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.

Michelin's Days Inventory for the six 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
	=	5770	/	10186	*	365 / 2
	=	103.38

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.

Michelin'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 )
	=	5770	/	14264
	=	0.40

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.

Michelin Inventory Turnover Related Terms

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Michelin (XPAR:ML) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Michelin (XPAR:ML) » Definitions » Inventory Turnover

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Traded in Other Exchanges

MGDDY:USA MGDDF:USA MLp:UK 0OFM:UK MCHA:Germany

Address

23, Place des Carmes, Dechaux, Puy-de-Dome, Clermont-Ferrand, FRA, 63000

Website

https://www.michelin.com

Michelin manufactures tires for passenger vehicles. The company also makes tires for all types of commercial vehicles as well as bicycle, motorcycle, earthmover, aviation, and agricultural tires. Its operations are organized into three operating segments namely Automotive and related distribution; Road transportation and related distribution; Specialty businesses and related distribution. The company generates maximum revenue from Automotive and related distribution segment.