Lanka Milk Foods (CWE) (COL:LMF.N0000) Inventory Turnover : 0.75 (As of Dec. 2023)

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What is Lanka Milk Foods (CWE) 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 Milk Foods (CWE)'s Cost of Goods Sold for the three months ended in Dec. 2023 was රු3,636 Mil. Lanka Milk Foods (CWE)'s Average Total Inventories for the quarter that ended in Dec. 2023 was රු4,834 Mil. Lanka Milk Foods (CWE)'s Inventory Turnover for the quarter that ended in Dec. 2023 was 0.75.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Lanka Milk Foods (CWE)'s Days Inventory for the three months ended in Dec. 2023 was 121.32.

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 Milk Foods (CWE)'s Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 1.13.

Lanka Milk Foods (CWE) Inventory Turnover Historical Data

The historical data trend for Lanka Milk Foods (CWE)'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 Milk Foods (CWE) Inventory Turnover Chart

Lanka Milk Foods (CWE) Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Inventory Turnover

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3.64

4.68

5.46

6.02

5.66

Lanka Milk Foods (CWE) Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															1.13	1.11	1.08	0.77	0.75

Lanka Milk Foods (CWE) Inventory Turnover Calculation

Lanka Milk Foods (CWE)'s Inventory Turnover for the fiscal year that ended in Mar. 2023 is calculated as

	Inventory Turnover (A: Mar. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2023 )	/ (	(Total Inventories (A: Mar. 2022 )	+	Total Inventories (A: Mar. 2023 ))	/	count )
=	12392.598	/ (	(1527.728	+	2853.238)	/	2 )
=	12392.598	/	2190.483
=	5.66

Lanka Milk Foods (CWE)'s Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	3635.503	/ (	(5132.073	+	4535.131)	/	2 )
=	3635.503	/	4833.602
=	0.75

Lanka Milk Foods (CWE) (COL:LMF.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 Milk Foods (CWE)'s Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	4833.602	/	3635.503	*	365 / 4
	=	121.32

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 Milk Foods (CWE)'s Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	4833.602	/	4267.928
	=	1.13

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 Milk Foods (CWE) Inventory Turnover Related Terms

Thank you for viewing the detailed overview of Lanka Milk Foods (CWE)'s Inventory Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.

Lanka Milk Foods (CWE) (COL:LMF.N0000) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Lanka Milk Foods (CWE) PLC (COL:LMF.N0000) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 579/1, Welisara, Ragama, LKA

Website

https://www.lmfgroup.lk

Lanka Milk Foods (CWE) PLC is engaged in the business of importing, packing, manufacturing, marketing, and distributing milk allied products. The company's operating segment includes Powdered Milk; Liquid Milk and Others, Agriculture and Trading. It generates maximum revenue from the Liquid Milk and Others segment. The Liquid Milk and Others segment includes the operating chain of packing and selling of UHT products, Daily, Ambewela Farm Fresh Milk, and fruit juice.

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