Aarti Drugs (BOM:524348) Inventory Turnover : 0.82 (As of Mar. 2024)

View and export this data going back to 1993. Start your Free Trial

What is Aarti Drugs 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. Aarti Drugs's Cost of Goods Sold for the three months ended in Mar. 2024 was ₹3,971 Mil. Aarti Drugs's Average Total Inventories for the quarter that ended in Mar. 2024 was ₹4,859 Mil. Aarti Drugs's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.82.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Aarti Drugs's Days Inventory for the three months ended in Mar. 2024 was 111.65.

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. Aarti Drugs's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.78.

Aarti Drugs Inventory Turnover Historical Data

The historical data trend for Aarti Drugs'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.

* Premium members only.

Aarti Drugs Inventory Turnover Chart

Aarti Drugs Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

Get a 7-Day Free Trial

4.90

4.20

4.22

3.62

3.35

Aarti Drugs 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															1.00	0.86	0.83	0.79	0.82

Aarti Drugs Inventory Turnover Calculation

Aarti Drugs'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 )
=	16777.2	/ (	(5162.91	+	4858.9)	/	2 )
=	16777.2	/	5010.905
=	3.35

Aarti Drugs'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 )
=	3971.1	/ (	(0	+	4858.9)	/	1 )
=	3971.1	/	4858.9
=	0.82

Aarti Drugs (BOM:524348) 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.

Aarti Drugs'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
	=	4858.9	/	3971.1	*	365 / 4
	=	111.65

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.

Aarti Drugs'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 )
	=	4858.9	/	6199.9
	=	0.78

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.

Aarti Drugs Inventory Turnover Related Terms

Thank you for viewing the detailed overview of Aarti Drugs's Inventory Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.

Aarti Drugs (BOM:524348) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Aarti Drugs Ltd (BOM:524348) » Definitions » Inventory Turnover

Traded in Other Exchanges

AARTIDRUGS:India

Address

Road No. 29, Plot Number 109-D, Mahendra Industrial Estate, Ground Floor, Sion (East), Mumbai, MH, IND, 400 022

Website

https://www.aartidrugs.co.in

Aarti Drugs Ltd is a pharmaceutical company. It offers active pharmaceutical ingredients (APIs) in a range of therapeutic categories, such as anti-inflammatory, cardioprotectant, antibiotic, antidiabetic, and vitamins among others. The product offerings of the company comprise Aceclofenac, Celecoxib, Moxifloxacin, and others. The firm generates the majority of its revenue from India.

Aarti Drugs (BOM:524348) Headlines

No Headlines