Piramal Pharma (BOM:543635) Inventory Turnover : 0.47 (As of Mar. 2024)

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What is Piramal Pharma 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. Piramal Pharma's Cost of Goods Sold for the three months ended in Mar. 2024 was ₹10,144 Mil. Piramal Pharma's Average Total Inventories for the quarter that ended in Mar. 2024 was ₹21,759 Mil. Piramal Pharma's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.47.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Piramal Pharma's Days Inventory for the three months ended in Mar. 2024 was 195.73.

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. Piramal Pharma's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.85.

Piramal Pharma Inventory Turnover Historical Data

The historical data trend for Piramal Pharma'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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Piramal Pharma Inventory Turnover Chart

Piramal Pharma Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

3.04

3.15

1.76

1.53

Piramal Pharma Quarterly Data
	Mar21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial							0.50	0.37	0.31	0.33	0.47

Piramal Pharma Inventory Turnover Calculation

Piramal Pharma'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 )
=	29540	/ (	(16813.7	+	21758.8)	/	2 )
=	29540	/	19286.25
=	1.53

Piramal Pharma'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 )
=	10143.9	/ (	(0	+	21758.8)	/	1 )
=	10143.9	/	21758.8
=	0.47

Piramal Pharma (BOM:543635) 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.

Piramal Pharma'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
	=	21758.8	/	10143.9	*	365 / 4
	=	195.73

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.

Piramal Pharma'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 )
	=	21758.8	/	25523.6
	=	0.85

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.

Piramal Pharma Inventory Turnover Related Terms

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Piramal Pharma (BOM:543635) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Piramal Pharma Ltd (BOM:543635) » Definitions » Inventory Turnover

Traded in Other Exchanges

PPLPHARMA:India

Address

Piramal Ananta, Agastya Corporate Park, Opposite Fire Brigade, Kamani Junction, LBS Marg, Kurla (West), Mumbai, MH, IND, 400070

Website

https://www.piramal.com

Piramal Pharma Ltd offers a portfolio of differentiated products and services through end-to-end manufacturing capabilities across 15 global facilities and a global distribution network in over 100 countries. It includes integrated contract development and manufacturing organization business, complex hospital generics business, and India consumer healthcare business, selling over-the-counter products in India.

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