Heavy Engineering Industries and Shipbuilding Co KSC (KUW:SHIP) Inventory Turnover : 2.21 (As of Mar. 2024)

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What is Heavy Engineering Industries and Shipbuilding Co KSC 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. Heavy Engineering Industries and Shipbuilding Co KSC's Cost of Goods Sold for the three months ended in Mar. 2024 was KWD32.0 Mil. Heavy Engineering Industries and Shipbuilding Co KSC's Average Total Inventories for the quarter that ended in Mar. 2024 was KWD14.5 Mil. Heavy Engineering Industries and Shipbuilding Co KSC's Inventory Turnover for the quarter that ended in Mar. 2024 was 2.21.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Heavy Engineering Industries and Shipbuilding Co KSC's Days Inventory for the three months ended in Mar. 2024 was 41.25.

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. Heavy Engineering Industries and Shipbuilding Co KSC's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.41.

Heavy Engineering Industries and Shipbuilding Co KSC Inventory Turnover Historical Data

The historical data trend for Heavy Engineering Industries and Shipbuilding Co KSC'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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Heavy Engineering Industries and Shipbuilding Co KSC Inventory Turnover Chart

Heavy Engineering Industries and Shipbuilding Co KSC Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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9.01

7.27

7.44

10.81

11.02

Heavy Engineering Industries and Shipbuilding Co KSC Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															2.78	2.56	3.05	2.72	2.21

Heavy Engineering Industries and Shipbuilding Co KSC Inventory Turnover Calculation

Heavy Engineering Industries and Shipbuilding Co KSC'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 )
=	135.245	/ (	(10.793	+	13.743)	/	2 )
=	135.245	/	12.268
=	11.02

Heavy Engineering Industries and Shipbuilding Co KSC's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	32.04	/ (	(13.743	+	15.226)	/	2 )
=	32.04	/	14.4845
=	2.21

Heavy Engineering Industries and Shipbuilding Co KSC (KUW:SHIP) 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.

Heavy Engineering Industries and Shipbuilding Co KSC's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	14.4845	/	32.04	*	365 / 4
	=	41.25

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.

Heavy Engineering Industries and Shipbuilding Co KSC's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	14.4845	/	35.253
	=	0.41

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.

Heavy Engineering Industries and Shipbuilding Co KSC Inventory Turnover Related Terms

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Heavy Engineering Industries and Shipbuilding Co KSC (KUW:SHIP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Heavy Engineering Industries and Shipbuilding Co KSC (KUW:SHIP) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

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Address

Shuwaik Port, Gate No.7, P.O. Box 21998, Safat, Kuwait, KWT, 13080

Website

https://www.heisco.com

Heavy Engineering Industries and Shipbuilding Company is an Engineering, Procurement and Construction Contracting company based in Kuwait with a diversified range of business in Oil and Gas, Refineries, Petrochemicals, Power, Distillation and Desalination, Shipbuilding and Repair, Marine Services, and Construction sectors. It delivers diversified services to the industry with civil, mechanical, electrical and instrumentation constructions, maintenance, fabrication, galvanizing, shipyard services, and onshore & offshore operations.