PSV Holdings (JSE:PSV) Inventory Turnover: 7.17 (As of Aug. 2019)

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What is PSV Holdings Inventory Turnover?

PSV Holdings JSE:PSV Inventory Turnover is 7.17 as of Aug. 2019.

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. PSV Holdings's Cost of Goods Sold for the six months ended in Aug. 2019 was R73.4 Mil. PSV Holdings's Average Total Inventories for the quarter that ended in Aug. 2019 was R10.2 Mil. PSV Holdings's Inventory Turnover for the quarter that ended in Aug. 2019 was 7.17.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. PSV Holdings's Days Inventory for the six months ended in Aug. 2019 was 25.44.

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. PSV Holdings's Inventory-to-Revenue for the quarter that ended in Aug. 2019 was 0.12.

PSV Holdings  (JSE:PSV) 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.

PSV Holdings's Days Inventory for the six months ended in Aug. 2019 is calculated as:

Days Inventory =Average Total Inventories (Q: Aug. 2019 )/Cost of Goods Sold (Q: Aug. 2019 )*Days in Period
=10.237/73.437*365 / 2
=25.44

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.

PSV Holdings's Inventory to Revenue for the quarter that ended in Aug. 2019 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Aug. 2019 ) / Revenue (Q: Aug. 2019 )
=10.237 / 84.379
=0.12

* 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.

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.

PSV Holdings Inventory Turnover Related Terms

PSV Holdings Inventory Turnover Historical Data

* Premium members only.

The historical data trend for PSV 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.

PSV Holdings Inventory Turnover Chart

PSV Holdings Annual Data
Trend Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17 Feb18 Feb19
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.27 8.21 6.56 4.98 9.92

PSV Holdings Semi-Annual Data
Feb10 Aug10 Feb11 Aug11 Feb12 Aug12 Feb13 Aug13 Feb14 Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19
Inventory Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.98 3.35 4.76 13.97 7.17

PSV Holdings Inventory Turnover Calculation

PSV Holdings's Inventory Turnover for the fiscal year that ended in Feb. 2019 is calculated as

Inventory Turnover (A: Feb. 2019 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Feb. 2019 ) / ((Total Inventories (A: Feb. 2018 ) + Total Inventories (A: Feb. 2019 )) / count )
=209.317 / ((35.703 + 6.497) / 2 )
=209.317 / 21.1
=9.92

PSV Holdings's Inventory Turnover for the quarter that ended in Aug. 2019 is calculated as

Inventory Turnover (Q: Aug. 2019 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Aug. 2019 ) / ((Total Inventories (Q: Feb. 2019 ) + Total Inventories (Q: Aug. 2019 )) / count )
=73.437 / ((6.497 + 13.977) / 2 )
=73.437 / 10.237
=7.17

* 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.

Frequently Asked Questions Learn more about Inventory Turnover →
What does a Inventory Turnover of 7.17 mean?
PSV Holdings (JSE:PSV) has a Inventory Turnover of 7.17 as of Aug. 2019. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on PSV Holdings and its competitors.
Is PSV Holdings' Inventory Turnover too high?
PSV Holdings' current Inventory Turnover is 7.17.
How does PSV Holdings' Inventory Turnover compare to HON and MMM?
PSV Holdings' Inventory Turnover of 7.17 can be compared against companies in the Industrial Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Inventory Turnover for an Industrial Products company?
A good Inventory Turnover depends on the Industrial Products industry context. However, Inventory Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Inventory Turnover mean?
A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on PSV Holdings and its competitors. PSV Holdings's current Inventory Turnover is 7.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PSV Holdings stock overvalued right now?
PSV Holdings (JSE:PSV) has a current Inventory Turnover of 7.17. The current Inventory Turnover is 7.17. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Inventory Turnover calculated?
Inventory Turnover is calculated from a company's financial statements. For PSV Holdings (JSE:PSV), the current Inventory Turnover is 7.17 as of Aug. 2019. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

PSV Holdings Business Description

Address Corner of Serenade & North Reef Roads, Henville Ext. Elandsfontein Rail, Germiston, ZAF, 1429
PSV Holdings Ltd is an industrial engineering holding company. It is engaged in providing steel, stainless steel, industrial supplies, specialized control valves, engineering linings, cryogenic equipment and storage tankers and also provides technology to the mining, water, wastewater management, health care, infrastructure and manufacturing sectors in South Africa and Africa. The company operates in two segments namely Industrial Supplies that includes steel, piping, industrial tools and consumable supplies and others; and Specialized Services that includes comprehensive cryogenic and gas systems. It derives key revenue from the Industrial supplies segment. Geographically, the group has operations in South Africa and other countries.