Lanka Ashok Leyland (COL:ASHO.N0000) Inventory Turnover : 0.35 (As of Mar. 2024)

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What is Lanka Ashok Leyland 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. Lanka Ashok Leyland's Cost of Goods Sold for the three months ended in Mar. 2024 was රු1,268 Mil. Lanka Ashok Leyland's Average Total Inventories for the quarter that ended in Mar. 2024 was රු3,585 Mil. Lanka Ashok Leyland's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.35.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Lanka Ashok Leyland's Days Inventory for the three months ended in Mar. 2024 was 257.93.

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. Lanka Ashok Leyland's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 2.05.

Lanka Ashok Leyland Inventory Turnover Historical Data

The historical data trend for Lanka Ashok Leyland'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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Lanka Ashok Leyland Inventory Turnover Chart

Lanka Ashok Leyland Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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1.35

0.63

1.65

1.06

1.13

Lanka Ashok Leyland 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															0.15	0.15	0.18	0.37	0.35

Lanka Ashok Leyland Inventory Turnover Calculation

Lanka Ashok Leyland'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 )
=	3589.972	/ (	(2623.994	+	3752.742)	/	2 )
=	3589.972	/	3188.368
=	1.13

Lanka Ashok Leyland'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 )
=	1268.257	/ (	(3417.163	+	3752.742)	/	2 )
=	1268.257	/	3584.9525
=	0.35

Lanka Ashok Leyland (COL:ASHO.N0000) 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.

Lanka Ashok Leyland'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
	=	3584.9525	/	1268.257	*	365 / 4
	=	257.93

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.

Lanka Ashok Leyland'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 )
	=	3584.9525	/	1749.566
	=	2.05

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.

Lanka Ashok Leyland Inventory Turnover Related Terms

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Lanka Ashok Leyland (COL:ASHO.N0000) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Lanka Ashok Leyland PLC (COL:ASHO.N0000) » Definitions » Inventory Turnover

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Address

Panagoda, Homagama, Colombo, LKA

Website

https://www.lal.lk

Lanka Ashok Leyland PLC is engaged in importing and marketing of Ashok Leyland buses, trucks, truck chassis, spare parts, power generators, and accessories. The company also carries out repairs and restoration of commercial vehicles including body fabrication on goods and passenger chassis. The firm builds the truck body for specific requirements and the building of driver's cabins. Besides, the firm assembles and manufactures Ashok Leyland vehicles with technical assistance from Ashok Leyland. The company solely operates in Sri Lanka.

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