Huadi International Group Co (Huadi International Group Co) Inventory Turnover : 1.41 (As of Sep. 2023)

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What is Huadi International 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. Huadi International Group Co's Cost of Goods Sold for the six months ended in Sep. 2023 was $39.75 Mil. Huadi International Group Co's Average Total Inventories for the quarter that ended in Sep. 2023 was $28.27 Mil. Huadi International Group Co's Inventory Turnover for the quarter that ended in Sep. 2023 was 1.41.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Huadi International Group Co's Days Inventory for the six months ended in Sep. 2023 was 129.80.

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. Huadi International Group Co's Inventory-to-Revenue for the quarter that ended in Sep. 2023 was 0.61.

Huadi International Group Co Inventory Turnover Historical Data

The historical data trend for Huadi International 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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Huadi International Group Co Inventory Turnover Chart

Huadi International Group Co Annual Data

Trend

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Inventory Turnover

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2.55

2.51

2.71

2.74

2.79

Huadi International Group Co Semi-Annual Data
	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Inventory Turnover	Get a 7-Day Free Trial						1.48	1.23	1.32	1.18	1.41

Huadi International Group Co Inventory Turnover Calculation

Huadi International Group Co's Inventory Turnover for the fiscal year that ended in Sep. 2023 is calculated as

	Inventory Turnover (A: Sep. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Sep. 2023 )	/ (	(Total Inventories (A: Sep. 2022 )	+	Total Inventories (A: Sep. 2023 ))	/	count )
=	71.976	/ (	(24.868	+	26.707)	/	2 )
=	71.976	/	25.7875
=	2.79

Huadi International Group Co's Inventory Turnover for the quarter that ended in Sep. 2023 is calculated as

	Inventory Turnover (Q: Sep. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2023 )	/ (	(Total Inventories (Q: Mar. 2023 )	+	Total Inventories (Q: Sep. 2023 ))	/	count )
=	39.754	/ (	(29.841	+	26.707)	/	2 )
=	39.754	/	28.274
=	1.41

Huadi International Group Co (NAS:HUDI) 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.

Huadi International Group Co's Days Inventory for the six months ended in Sep. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2023 )	/	Cost of Goods Sold (Q: Sep. 2023 )	*	Days in Period
	=	28.274	/	39.754	*	365 / 2
	=	129.80

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.

Huadi International Group Co's Inventory to Revenue for the quarter that ended in Sep. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	28.274	/	46.38
	=	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.

Huadi International Group Co Inventory Turnover Related Terms

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Huadi International Group Co (Huadi International Group Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Huadi International Group Co Ltd (NAS:HUDI) » Definitions » Inventory Turnover

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Traded in Other Exchanges

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Address

No.1688 Tianzhong Street, Longwan District, Zhejiang Province, Wenzhou, CHN, 325025

Website

http://www.huadigroup.com

Huadi International Group Co Ltd is a manufacturer of industrial stainless steel seamless pipes and tubes products. Its products are used in the oil & gas transmission, chemistry engineering, food processing, medical devices, aeronautics and astronautics, boiler, irrigation works construction, automobile and naval architecture, paper mill and mechanical industries. Products are exported to the United States, Mexico, Thailand, Australia, Argentina, Taiwan, India, the Philippines, UAE and Canada. Geographically, majority revenue is generated from China.