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. ESAB's Cost of Goods Sold for the
three
months ended in Mar. 2024 was $435 Mil. ESAB's Average Total Inventories for the quarter that ended in Mar. 2024 was $399 Mil.
ESAB's Inventory Turnover for the quarter that ended in Mar. 2024 was 1.09.
Days Inventory indicates the number of days of goods in sales that a company has in the inventory.
ESAB's Days Inventory for the
three
months ended in Mar. 2024 was 83.80.
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.
ESAB's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.58.
ESAB Inventory Turnover Historical Data
The historical data trend for ESAB'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.
* 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.
ESAB (NYSE:ESAB) 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.
ESAB's Days Inventory for the
three
months ended in Mar. 2024 is calculated as:
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.
ESAB's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as
* 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.
ESAB Inventory Turnover Related Terms
Thank you for viewing the detailed overview of ESAB's Inventory Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.
ESAB, spun off from Colfax in 2022, is a leading manufacturer of equipment and consumables used in welding, cutting, and joining applications. Alongside competitors Lincoln Electric and ITW's Miller brand, ESAB is one of the top three players in the welding space. ESAB generated roughly $2.6 billion in revenue and $329 million in GAAP operating income in 2022.
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