Eastern Gases (BOM:540790) Inventory Turnover: 1.84 (As of Mar. 2018)

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What is Eastern Gases Inventory Turnover?

Eastern Gases BOM:540790 Inventory Turnover is 1.84 as of Mar. 2018.

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. Eastern Gases's Cost of Goods Sold for the three months ended in Mar. 2018 was ₹15.7 Mil. Eastern Gases's Average Total Inventories for the quarter that ended in Mar. 2018 was ₹8.5 Mil. Eastern Gases's Inventory Turnover for the quarter that ended in Mar. 2018 was 1.84.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Eastern Gases's Days Inventory for the three months ended in Mar. 2018 was 49.62.

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. Eastern Gases's Inventory-to-Revenue for the quarter that ended in Mar. 2018 was 0.54.

Eastern Gases  (BOM:540790) 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.

Eastern Gases's Days Inventory for the three months ended in Mar. 2018 is calculated as:

Days Inventory =Average Total Inventories (Q: Mar. 2018 )/Cost of Goods Sold (Q: Mar. 2018 )*Days in Period
=8.531/15.687*365 / 4
=49.62

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.

Eastern Gases's Inventory to Revenue for the quarter that ended in Mar. 2018 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Mar. 2018 ) / Revenue (Q: Mar. 2018 )
=8.531 / 15.836
=0.54

* 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.

Eastern Gases Inventory Turnover Related Terms

Eastern Gases Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Eastern Gases'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.

Eastern Gases Inventory Turnover Chart

Eastern Gases Annual Data
Trend Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 289.36 215.17 68.60 25.72 1.62

Eastern Gases Quarterly Data
Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
Inventory Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.82 0.27 0.24 0.24 1.84

Eastern Gases Inventory Turnover Calculation

Eastern Gases's Inventory Turnover for the fiscal year that ended in Mar. 2018 is calculated as

Inventory Turnover (A: Mar. 2018 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Mar. 2018 ) / ((Total Inventories (A: Mar. 2017 ) + Total Inventories (A: Mar. 2018 )) / count )
=110.2 / ((127.141 + 8.531) / 2 )
=110.2 / 67.836
=1.62

Eastern Gases's Inventory Turnover for the quarter that ended in Mar. 2018 is calculated as

Inventory Turnover (Q: Mar. 2018 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Mar. 2018 ) / ((Total Inventories (Q: Dec. 2017 ) + Total Inventories (Q: Mar. 2018 )) / count )
=15.687 / ((0 + 8.531) / 1 )
=15.687 / 8.531
=1.84

* 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 1.84 mean?
Eastern Gases (BOM:540790) has a Inventory Turnover of 1.84 as of Mar. 2018. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Eastern Gases and its competitors.
Is Eastern Gases' Inventory Turnover too high?
Eastern Gases' current Inventory Turnover is 1.84.
How does Eastern Gases' Inventory Turnover compare to ICNN and QEGY?
Eastern Gases' Inventory Turnover of 1.84 can be compared against companies in the Oil & Gas 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 Oil & Gas company?
A good Inventory Turnover depends on the Oil & Gas 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 Eastern Gases and its competitors. Eastern Gases's current Inventory Turnover is 1.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eastern Gases stock overvalued right now?
Eastern Gases (BOM:540790) has a current Inventory Turnover of 1.84. The current Inventory Turnover is 1.84. 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 Eastern Gases (BOM:540790), the current Inventory Turnover is 1.84 as of Mar. 2018. 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.

Eastern Gases Business Description

Industry EnergyOil & Gas
Address 1 Kyd Street, 43 Palace Court, Kolkata, WB, IND, 700016
Eastern Gases Ltd is engaged in bottling, trading and retailing of LPG and general goods bulk supplies. The company deals in LPG, Propane, Butane, and Ammonia for industrial and commercial usage. It caters to the requirement of industrial user and packed users of LPG as well as Auto LPG segment. The company caters the commercial cylinder market of West Bengal, Bihar, and Orissa from its own bottling plant situated at Durgapur. Its Auto LPG Retail Outlet is present in Paschim Medinipur, West Bengal.