Hikma Pharmaceuticals (FRA:H5P) Inventory Turnover : 0.88 (As of Dec. 2023)

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What is Hikma Pharmaceuticals 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. Hikma Pharmaceuticals's Cost of Goods Sold for the six months ended in Dec. 2023 was €709 Mil. Hikma Pharmaceuticals's Average Total Inventories for the quarter that ended in Dec. 2023 was €805 Mil. Hikma Pharmaceuticals's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.88.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Hikma Pharmaceuticals's Days Inventory for the six months ended in Dec. 2023 was 207.24.

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. Hikma Pharmaceuticals's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.61.

Hikma Pharmaceuticals Inventory Turnover Historical Data

The historical data trend for Hikma Pharmaceuticals'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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Hikma Pharmaceuticals Inventory Turnover Chart

Hikma Pharmaceuticals Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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2.07

1.65

1.79

1.76

Hikma Pharmaceuticals Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															0.94	0.85	0.88	0.86	0.88

Hikma Pharmaceuticals Inventory Turnover Calculation

Hikma Pharmaceuticals's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	1361.745	/ (	(732.544	+	817.047)	/	2 )
=	1361.745	/	774.7955
=	1.76

Hikma Pharmaceuticals'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: Jun. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	708.841	/ (	(792.857	+	817.047)	/	2 )
=	708.841	/	804.952
=	0.88

Hikma Pharmaceuticals (FRA:H5P) 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.

Hikma Pharmaceuticals's Days Inventory for the six 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
	=	804.952	/	708.841	*	365 / 2
	=	207.24

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.

Hikma Pharmaceuticals'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 )
	=	804.952	/	1327.816
	=	0.61

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.

Hikma Pharmaceuticals Inventory Turnover Related Terms

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Hikma Pharmaceuticals Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Hikma Pharmaceuticals PLC (FRA:H5P) » Definitions » Inventory Turnover

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HKMPY:USA HKMPF:USA HIKl:UK HIK:UK

Address

1 New Burlington Place, London, GBR, W1S 2HR

Website

https://www.hikma.com

Hikma Pharmaceuticals PLC is engaged in developing, manufacturing, and marketing a broad range of generic, branded and non-branded, in-licensed pharmaceutical products. The firm operates in three segments: injectables, generics, and branded. The majority of the revenue for the company is generated from its injectables segment under which it supplies hospitals across markets with generic injectable products, supported by its manufacturing facilities. Geographically, North America is the company's key revenue generating market followed by Middle East and North Africa, United Kingdom, Europe and the rest of the world.

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