Eicher Motors (BOM:505200) Inventory Turnover : 1.61 (As of Mar. 2024)

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What is Eicher Motors 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. Eicher Motors's Cost of Goods Sold for the three months ended in Mar. 2024 was ₹22,754 Mil. Eicher Motors's Average Total Inventories for the quarter that ended in Mar. 2024 was ₹14,096 Mil. Eicher Motors's Inventory Turnover for the quarter that ended in Mar. 2024 was 1.61.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Eicher Motors's Days Inventory for the three months ended in Mar. 2024 was 56.53.

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. Eicher Motors's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.34.

Eicher Motors Inventory Turnover Historical Data

The historical data trend for Eicher Motors'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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Eicher Motors Inventory Turnover Chart

Eicher Motors Annual Data

Trend

Dec14

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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8.55

7.26

5.93

6.81

6.68

Eicher Motors 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															1.66	1.74	1.41	1.44	1.61

Eicher Motors Inventory Turnover Calculation

Eicher Motors'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 )
=	89806.5	/ (	(12784.4	+	14096.4)	/	2 )
=	89806.5	/	13440.4
=	6.68

Eicher Motors'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 )
=	22754.2	/ (	(0	+	14096.4)	/	1 )
=	22754.2	/	14096.4
=	1.61

Eicher Motors (BOM:505200) 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.

Eicher Motors'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
	=	14096.4	/	22754.2	*	365 / 4
	=	56.53

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.

Eicher Motors'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 )
	=	14096.4	/	41733.5
	=	0.34

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.

Eicher Motors Inventory Turnover Related Terms

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Eicher Motors (BOM:505200) Business Description

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EICHERMOT:India

Address

No. 96, Sector 32, Gurugram, HR, IND, 122001

Website

https://www.eichermotors.com

Eicher Motors Ltd is an Indian automobile manufacturer. The company organizes itself into two divisions, based on product type: motorcycles, and commercial vehicles. The motorcycles division, the most significant contributor to Eicher Motors' revenue, produces motorcycles through the Royal Enfield brand. The commercial vehicles divisions, through a joint venture with Volvo, produces trucks and buses for sale in India and other developing markets. The company derives the vast majority of revenue domestically.

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