Royale Home Holdings (HKSE:01198) Inventory Turnover : 1.35 (As of Dec. 2023)

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What is Royale Home Holdings 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. Royale Home Holdings's Cost of Goods Sold for the six months ended in Dec. 2023 was HK$411.7 Mil. Royale Home Holdings's Average Total Inventories for the quarter that ended in Dec. 2023 was HK$305.7 Mil. Royale Home Holdings's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.35.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Royale Home Holdings's Days Inventory for the six months ended in Dec. 2023 was 135.52.

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. Royale Home Holdings's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.94.

Royale Home Holdings Inventory Turnover Historical Data

The historical data trend for Royale Home Holdings'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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Royale Home Holdings Inventory Turnover Chart

Royale Home Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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1.99

4.57

4.66

5.25

2.88

Royale Home Holdings 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															3.03	2.27	3.07	1.67	1.35

Royale Home Holdings Inventory Turnover Calculation

Royale Home Holdings'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 )
=	876.991	/ (	(278.15	+	330.758)	/	2 )
=	876.991	/	304.454
=	2.88

Royale Home Holdings'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 )
=	411.705	/ (	(280.665	+	330.758)	/	2 )
=	411.705	/	305.7115
=	1.35

Royale Home Holdings (HKSE:01198) 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.

Royale Home Holdings'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
	=	305.7115	/	411.705	*	365 / 2
	=	135.52

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.

Royale Home Holdings'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 )
	=	305.7115	/	325.173
	=	0.94

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.

Royale Home Holdings Inventory Turnover Related Terms

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Royale Home Holdings (HKSE:01198) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Royale Home Holdings Ltd (HKSE:01198) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

66 Mody Road, Room 607, 6th Floor, Tsim Sha Tsui Centre, Tsim Sha Tsui East, Kowloon, Hong Kong, HKG

Website

https://royale.todayir.com

Royale Home Holdings Ltd is an investment holding company. Along with its subsidiaries, the firm is engaged in the manufacture and sale of home furniture in China. The segments of the company are, 1) The furniture products segment, engaging in the manufacture and sale of home furniture. 2) The development properties for sale and property investments segment, engaging in the property investments and development. 3) The hotel operations segment, engaging in hotel operations. 4) The trading segment, engaging in the trading of aluminium ingots and bars. Geographically, it derives revenue from Mainland China.

Executives

Tse Kam Pang	2201 Interest of corporation controlled by you
Ke Xue Cheng Guang Zhou Tou Zi Ji Tuan You Xian Gong Si	2201 Interest of corporation controlled by you
Ke Xue Cheng Xiang Gang Tou Zi You Xian Gong Si	2101 Beneficial owner
Great Diamond Developments Ltd	2101 Beneficial owner

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