Hudaco Industries (JSE:HDC) Inventory Turnover : 1.10 (As of Nov. 2023)

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What is Hudaco Industries 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. Hudaco Industries's Cost of Goods Sold for the six months ended in Nov. 2023 was R2,943 Mil. Hudaco Industries's Average Total Inventories for the quarter that ended in Nov. 2023 was R2,679 Mil. Hudaco Industries's Inventory Turnover for the quarter that ended in Nov. 2023 was 1.10.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Hudaco Industries's Days Inventory for the six months ended in Nov. 2023 was 166.15.

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. Hudaco Industries's Inventory-to-Revenue for the quarter that ended in Nov. 2023 was 0.58.

Hudaco Industries Inventory Turnover Historical Data

The historical data trend for Hudaco Industries'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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Hudaco Industries Inventory Turnover Chart

Hudaco Industries Annual Data

Trend

Nov14

Nov15

Nov16

Nov17

Nov18

Nov19

Nov20

Nov21

Nov22

Nov23

Inventory Turnover

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2.41

2.46

2.54

2.37

2.26

Hudaco Industries Semi-Annual Data
	May14	Nov14	May15	Nov15	May16	Nov16	May17	Nov17	May18	Nov18	May19	Nov19	May20	Nov20	May21	Nov21	May22	Nov22	May23	Nov23
Inventory Turnover	Get a 7-Day Free Trial															1.30	1.12	1.19	1.10	1.10

Hudaco Industries Inventory Turnover Calculation

Hudaco Industries's Inventory Turnover for the fiscal year that ended in Nov. 2023 is calculated as

	Inventory Turnover (A: Nov. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Nov. 2023 )	/ (	(Total Inventories (A: Nov. 2022 )	+	Total Inventories (A: Nov. 2023 ))	/	count )
=	5693.784	/ (	(2355.407	+	2693.35)	/	2 )
=	5693.784	/	2524.3785
=	2.26

Hudaco Industries's Inventory Turnover for the quarter that ended in Nov. 2023 is calculated as

	Inventory Turnover (Q: Nov. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Nov. 2023 )	/ (	(Total Inventories (Q: May. 2023 )	+	Total Inventories (Q: Nov. 2023 ))	/	count )
=	2942.784	/ (	(2665	+	2693.35)	/	2 )
=	2942.784	/	2679.175
=	1.10

Hudaco Industries (JSE:HDC) 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.

Hudaco Industries's Days Inventory for the six months ended in Nov. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Nov. 2023 )	/	Cost of Goods Sold (Q: Nov. 2023 )	*	Days in Period
	=	2679.175	/	2942.784	*	365 / 2
	=	166.15

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.

Hudaco Industries's Inventory to Revenue for the quarter that ended in Nov. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Nov. 2023 )	/	Revenue (Q: Nov. 2023 )
	=	2679.175	/	4646.563
	=	0.58

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.

Hudaco Industries Inventory Turnover Related Terms

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Hudaco Industries (JSE:HDC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Hudaco Industries Ltd (JSE:HDC) » Definitions » Inventory Turnover

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Address

Emerald Boulevard, Greenstone Hill, Building 9, 1st Floor, Greenstone Hill Office Park, Edenvale, GT, ZAF, 1609

Website

http://www.hudaco.co.za

Hudaco Industries Ltd is engaged in importing and distributing branded automotive, industrial and electrical consumable products. The company operates in two business segment such as Consumer-related product segment which includes power tools, security equipment, communication equipment, automotive and batteries, and Engineering consumables segment which consist of bearings, diesel engines and spares, and power transmission. It generates maximum revenue from Consumer-related product segment. Geographically, it derives a majority of revenue from South Africa.

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