Vallabh Steels (BOM:513397) Inventory Turnover : 0.65 (As of Mar. 2024)

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What is Vallabh Steels 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. Vallabh Steels's Cost of Goods Sold for the three months ended in Mar. 2024 was ₹3.21 Mil. Vallabh Steels's Average Total Inventories for the quarter that ended in Mar. 2024 was ₹4.98 Mil. Vallabh Steels's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.65.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Vallabh Steels's Days Inventory for the three months ended in Mar. 2024 was 141.47.

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.

Vallabh Steels Inventory Turnover Historical Data

The historical data trend for Vallabh Steels'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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Vallabh Steels Inventory Turnover Chart

Vallabh Steels Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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3.06

0.82

0.71

0.40

2.37

Vallabh Steels 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															0.92	0.55	0.65	0.65	0.65

Vallabh Steels Inventory Turnover Calculation

Vallabh Steels'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 )
=	12.882	/ (	(5.901	+	4.975)	/	2 )
=	12.882	/	5.438
=	2.37

Vallabh Steels'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 )
=	3.209	/ (	(0	+	4.975)	/	1 )
=	3.209	/	4.975
=	0.65

Vallabh Steels (BOM:513397) 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.

Vallabh Steels'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
	=	4.975	/	3.209	*	365 / 4
	=	141.47

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.

Vallabh Steels'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 )
	=	4.975	/	0
	=

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.

Vallabh Steels Inventory Turnover Related Terms

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Vallabh Steels (BOM:513397) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Vallabh Steels Ltd (BOM:513397) » Definitions » Inventory Turnover

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Address

G.T. Road, Village Pawa, Sahnewal, Ludhiana, PB, IND, 141120

Website

https://www.vallabhsteelsltd.in

Vallabh Steels Ltd is an Indian firm operating in a single segment of the iron and steel industry engaged in the manufacturing and marketing of galvanized steel pipes and cold rolled steel strips and coils. The firm manufactures mild steel electric resistance weld black and galvanized pipes suitable for various industrial and household applications. It also produces precision tubes made of cold-rolled close annealed, to meet the needs of the automobile industry and the general engineering industry.

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