Ruby Cables (BOM:539836) Inventory Turnover: 12.88 (As of Mar. 2017)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Ruby Cables Inventory Turnover?

Ruby Cables BOM:539836 Inventory Turnover is 12.88 as of Mar. 2017.

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. Ruby Cables's Cost of Goods Sold for the six months ended in Mar. 2017 was ₹991.9 Mil. Ruby Cables's Average Total Inventories for the quarter that ended in Mar. 2017 was ₹77.0 Mil. Ruby Cables's Inventory Turnover for the quarter that ended in Mar. 2017 was 12.88.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Ruby Cables's Days Inventory for the six months ended in Mar. 2017 was 14.17.

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. Ruby Cables's Inventory-to-Revenue for the quarter that ended in Mar. 2017 was 0.09.


Ruby Cables  (BOM:539836) 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.

Ruby Cables's Days Inventory for the six months ended in Mar. 2017 is calculated as:

Days Inventory =Average Total Inventories (Q: Mar. 2017 )/Cost of Goods Sold (Q: Mar. 2017 )*Days in Period
=77.037/991.859*365 / 2
=14.17

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.

Ruby Cables's Inventory to Revenue for the quarter that ended in Mar. 2017 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Mar. 2017 ) / Revenue (Q: Mar. 2017 )
=77.037 / 874.607
=0.09

* 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.


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.


Ruby Cables Inventory Turnover Related Terms


Ruby Cables Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Ruby Cables'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.

Ruby Cables Inventory Turnover Chart

Ruby Cables Annual Data
Trend Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
Inventory Turnover
Get a 7-Day Free Trial 7.42 9.20 6.20 7.39 13.65

Ruby Cables Semi-Annual Data
Mar11 Mar12 Mar13 Mar14 Mar15 Sep15 Mar16 Sep16 Mar17
Inventory Turnover Get a 7-Day Free Trial Premium Member Only 0.00 2.92 3.76 0.47 12.88

Ruby Cables Inventory Turnover Calculation

Ruby Cables's Inventory Turnover for the fiscal year that ended in Mar. 2017 is calculated as

Inventory Turnover (A: Mar. 2017 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Mar. 2017 ) / ((Total Inventories (A: Mar. 2016 ) + Total Inventories (A: Mar. 2017 )) / count )
=1055.85 / ((137.917 + 16.801) / 2 )
=1055.85 / 77.359
=13.65

Ruby Cables's Inventory Turnover for the quarter that ended in Mar. 2017 is calculated as

Inventory Turnover (Q: Mar. 2017 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Mar. 2017 ) / ((Total Inventories (Q: Sep. 2016 ) + Total Inventories (Q: Mar. 2017 )) / count )
=991.859 / ((137.273 + 16.801) / 2 )
=991.859 / 77.037
=12.88

* 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.

Frequently Asked Questions Learn more about Inventory Turnover →
What does a Inventory Turnover of 12.88 mean?
Ruby Cables (BOM:539836) has a Inventory Turnover of 12.88 as of Mar. 2017. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Ruby Cables and its competitors.
Is Ruby Cables' Inventory Turnover too high?
Ruby Cables' current Inventory Turnover is 12.88.
How does Ruby Cables' Inventory Turnover compare to TNLX and MFCO?
Ruby Cables' Inventory Turnover of 12.88 can be compared against companies in the Industrial Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Inventory Turnover for an Industrial Products company?
A good Inventory Turnover depends on the Industrial Products industry context. However, Inventory Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Inventory Turnover mean?
A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Ruby Cables and its competitors. Ruby Cables's current Inventory Turnover is 12.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ruby Cables stock overvalued right now?
Ruby Cables (BOM:539836) has a current Inventory Turnover of 12.88. The current Inventory Turnover is 12.88. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Inventory Turnover calculated?
Inventory Turnover is calculated from a company's financial statements. For Ruby Cables (BOM:539836), the current Inventory Turnover is 12.88 as of Mar. 2017. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Ruby Cables Business Description

Address 15, G.I.D.C., Manjusar, Taluk Savli, Vadodara, GJ, IND, 391775
Ruby Cables Ltd is the manufacturer of all types of polyvinyl chloride/chemically cross-linked polyethylene Foam(PVC/XLPE) insulated low tension wires and cables. The company also manufactures all aluminium conductors(AAC), all aluminium alloy conductors(AAAC), aluminium conductor steel reinforced cable(ACSR) and aerial bunch cables. The company is based in India.