Reckon (ASX:RKN) Inventory Turnover : 14.53 (As of Dec. 2024)

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What is Reckon 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. Reckon's Cost of Goods Sold for the six months ended in Dec. 2024 was A$4.48 Mil. Reckon's Average Total Inventories for the quarter that ended in Dec. 2024 was A$0.31 Mil. Reckon's Inventory Turnover for the quarter that ended in Dec. 2024 was 14.53.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Reckon's Days Inventory for the six months ended in Dec. 2024 was 12.56.

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. Reckon's Inventory-to-Revenue for the quarter that ended in Dec. 2024 was 0.01.

Reckon Inventory Turnover Historical Data

The historical data trend for Reckon'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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Reckon Inventory Turnover Chart

Reckon Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Inventory Turnover

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6.20

9.76

16.44

23.32

27.34

Reckon Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
Inventory Turnover	Get a 7-Day Free Trial															10.04	11.30	13.79	11.23	14.53

Reckon Inventory Turnover Calculation

Reckon's Inventory Turnover for the fiscal year that ended in Dec. 2024 is calculated as

	Inventory Turnover (A: Dec. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2024 )	/ (	(Total Inventories (A: Dec. 2023 )	+	Total Inventories (A: Dec. 2024 ))	/	count )
=	8.147	/ (	(0.316	+	0.28)	/	2 )
=	8.147	/	0.298
=	27.34

Reckon's Inventory Turnover for the quarter that ended in Dec. 2024 is calculated as

	Inventory Turnover (Q: Dec. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2024 )	/ (	(Total Inventories (Q: Jun. 2024 )	+	Total Inventories (Q: Dec. 2024 ))	/	count )
=	4.482	/ (	(0.337	+	0.28)	/	2 )
=	4.482	/	0.3085
=	14.53

Reckon (ASX:RKN) 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.

Reckon's Days Inventory for the six months ended in Dec. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2024 )	/	Cost of Goods Sold (Q: Dec. 2024 )	*	Days in Period
	=	0.3085	/	4.482	*	365 / 2
	=	12.56

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.

Reckon's Inventory to Revenue for the quarter that ended in Dec. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2024 )	/	Revenue (Q: Dec. 2024 )
	=	0.3085	/	25.658
	=	0.01

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.

Reckon Inventory Turnover Related Terms

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Reckon Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Reckon Ltd (ASX:RKN) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

RKNLF:USA

Address

100 Pacific Highway, Level 2, North Sydney, Sydney, NSW, AUS, 2060

Website

https://www.reckon.com.au

Reckon Ltd provides accounting software to the small and medium enterprise market. It operates in two segments: Business Group, which develops, distributes, and supports business accounting and personal financial software, as well as related products and services; Legal segment is into development, distribution, and support of cost recovery, scan, and cloud-based integration platforms under the nQ Zebraworks brand predominantly to the legal market. The company's geographical segments are Australia, the United States, and Other countries. The company generates the majority of its revenue from Australia.

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