Vardhman Textiles (BOM:502986) Inventory Turnover : 0.33 (As of Mar. 2024)

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What is Vardhman Textiles 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. Vardhman Textiles's Cost of Goods Sold for the three months ended in Mar. 2024 was ₹13,977 Mil. Vardhman Textiles's Average Total Inventories for the quarter that ended in Mar. 2024 was ₹41,799 Mil. Vardhman Textiles's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.33.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Vardhman Textiles's Days Inventory for the three months ended in Mar. 2024 was 272.89.

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. Vardhman Textiles's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 1.70.

Vardhman Textiles Inventory Turnover Historical Data

The historical data trend for Vardhman Textiles'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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Vardhman Textiles Inventory Turnover Chart

Vardhman Textiles Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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1.73

1.48

1.98

2.25

1.70

Vardhman Textiles 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															0.64	0.59	0.65	0.59	0.33

Vardhman Textiles Inventory Turnover Calculation

Vardhman Textiles'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 )
=	55938.2	/ (	(23926.8	+	41798.9)	/	2 )
=	55938.2	/	32862.85
=	1.70

Vardhman Textiles'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 )
=	13976.9	/ (	(0	+	41798.9)	/	1 )
=	13976.9	/	41798.9
=	0.33

Vardhman Textiles (BOM:502986) 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.

Vardhman Textiles'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
	=	41798.9	/	13976.9	*	365 / 4
	=	272.89

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.

Vardhman Textiles'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 )
	=	41798.9	/	24594.1
	=	1.70

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.

Vardhman Textiles Inventory Turnover Related Terms

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Vardhman Textiles (BOM:502986) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Vardhman Textiles Ltd (BOM:502986) » Definitions » Inventory Turnover

Traded in Other Exchanges

VTL:India

Address

Chandigarh Road, Vardhman Premises, Ludhiana, PB, IND, 141010

Website

https://www.vardhman.com

Vardhman Textiles Ltd is a manufacturer and seller of textiles and acrylic fiber. The company is based in India and generates about a quarter of revenue internationally. The company's largest revenue segment is textiles, which offers greige and dyed yarns in a number of fabrics such as cotton, polyester, acrylic, organic cotton, melange, cellulose, and synthetics. Vardhman Textiles provides fabrics for the apparel industry and home textiles and manufactures shirts for retail brands. In addition, the company offers hot-rolled bars for use in industries such as automotive, engineering, and allied industries.

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