AAK AB (AAK AB) Inventory Turnover : 0.88 (As of Mar. 2024)

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What is AAK AB 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. AAK AB's Cost of Goods Sold for the three months ended in Mar. 2024 was $762 Mil. AAK AB's Average Total Inventories for the quarter that ended in Mar. 2024 was $868 Mil. AAK AB's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.88.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. AAK AB's Days Inventory for the three months ended in Mar. 2024 was 104.01.

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. AAK AB's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.81.

AAK AB Inventory Turnover Historical Data

The historical data trend for AAK AB'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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AAK AB Inventory Turnover Chart

AAK AB Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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3.58

3.29

3.42

3.78

3.48

AAK AB 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															0.90	0.87	0.92	0.91	0.88

AAK AB Inventory Turnover Calculation

AAK AB'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 )
=	3343.472	/ (	(1076.701	+	843.862)	/	2 )
=	3343.472	/	960.2815
=	3.48

AAK AB'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 )
=	761.576	/ (	(843.862	+	892.3)	/	2 )
=	761.576	/	868.081
=	0.88

AAK AB (OTCPK:ARHUF) 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.

AAK AB'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
	=	868.081	/	761.576	*	365 / 4
	=	104.01

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.

AAK AB'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 )
	=	868.081	/	1067.878
	=	0.81

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.

AAK AB Inventory Turnover Related Terms

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AAK AB (AAK AB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » AAK AB (OTCPK:ARHUF) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

AAK:Sweden AAKs:UK 0A0J:UK 6AA0:Germany

Address

Skrivaregatan 9, Malmo, SWE, SE-215 32

Website

https://www.aak.com

AAK AB is a Swedish refined vegetable oils producer with sales operations around the world. The company has three business segments: Food ingredients, Chocolate & confectionery fats, and Technical products & feed. The food ingredients segment provides solutions to the bakery, dairy, nutrition, plant-based, & food service industries. The Chocolate & Confectionery Fats segment mainly serves manufacturers of chocolate, spreads, & fillings products as well as customers in the personal care industry. Technical Products & Feed segment provides a growing range of specialized solutions, responding to an increased demand for natural ingredients & sustainability. The majority is from the Food ingredients segment.