Midea Group Co (HKSE:00300) Inventory Turnover : 1.83 (As of Sep. 2024)

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What is Midea Group Co 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. Midea Group Co's Cost of Goods Sold for the three months ended in Sep. 2024 was HK$82,824 Mil. Midea Group Co's Average Total Inventories for the quarter that ended in Sep. 2024 was HK$45,256 Mil. Midea Group Co's Inventory Turnover for the quarter that ended in Sep. 2024 was 1.83.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Midea Group Co's Days Inventory for the three months ended in Sep. 2024 was 49.86.

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. Midea Group Co's Inventory-to-Revenue for the quarter that ended in Sep. 2024 was 0.40.

Midea Group Co Inventory Turnover Historical Data

The historical data trend for Midea Group Co'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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Midea Group Co Inventory Turnover Chart

Midea Group Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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6.75

7.51

6.96

5.41

5.80

Midea Group Co Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Inventory Turnover	Get a 7-Day Free Trial															2.03	1.44	1.74	1.99	1.83

Midea Group Co Inventory Turnover Calculation

Midea Group Co'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 )
=	299166.687	/ (	(51419.014	+	51778.678)	/	2 )
=	299166.687	/	51598.846
=	5.80

Midea Group Co's Inventory Turnover for the quarter that ended in Sep. 2024 is calculated as

	Inventory Turnover (Q: Sep. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2024 )	/ (	(Total Inventories (Q: Jun. 2024 )	+	Total Inventories (Q: Sep. 2024 ))	/	count )
=	82824.035	/ (	(43416.17	+	47095.77)	/	2 )
=	82824.035	/	45255.97
=	1.83

Midea Group Co (HKSE:00300) 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.

Midea Group Co's Days Inventory for the three months ended in Sep. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2024 )	/	Cost of Goods Sold (Q: Sep. 2024 )	*	Days in Period
	=	45255.97	/	82824.035	*	365 / 4
	=	49.86

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.

Midea Group Co's Inventory to Revenue for the quarter that ended in Sep. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2024 )	/	Revenue (Q: Sep. 2024 )
	=	45255.97	/	112557.652
	=	0.40

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.

Midea Group Co Inventory Turnover Related Terms

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Midea Group Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Midea Group Co Ltd (HKSE:00300) » Definitions » Inventory Turnover

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Traded in Other Exchanges

1520:Germany 000333:China

Address

No. 6 Midea Avenue, Beijiao Town, Midea Headquarters Building, Shunde District, Guangdong Province, Foshan, CHN, 528311

Website

http://www.midea.com

Midea Group Co., Ltd. is one of the largest household appliance manufacturers in China, with key products such as air conditioners, refrigerators, washing machines and small household appliances. It is consistently ranked as one of the top three players in China by retail sales in most home appliance categories. The firm also engages in industrial automation and robotics systems through wholly owned Kuka, a global market leader based in Germany. Heating, ventilation, and air conditioning, or HVAC, products generally contribute the most to Midea's revenue, followed by other consumer appliances, and robotics and automation systems. In addition, Midea generates around 40% of sales outside China.

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