Croda International (LSE:CRDA) Inventory Turnover : 1.23 (As of Dec. 2023)

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What is Croda International 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. Croda International's Cost of Goods Sold for the six months ended in Dec. 2023 was £466 Mil. Croda International's Average Total Inventories for the quarter that ended in Dec. 2023 was £380 Mil. Croda International's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.23.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Croda International's Days Inventory for the six months ended in Dec. 2023 was 148.92.

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. Croda International's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.47.

Croda International Inventory Turnover Historical Data

The historical data trend for Croda International'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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Croda International Inventory Turnover Chart

Croda International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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2.68

2.65

2.55

2.43

2.40

Croda International 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															1.21	1.35	1.14	1.13	1.23

Croda International Inventory Turnover Calculation

Croda International'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 )
=	964.5	/ (	(464	+	341.2)	/	2 )
=	964.5	/	402.6
=	2.40

Croda International'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 )
=	466.1	/ (	(419.5	+	341.2)	/	2 )
=	466.1	/	380.35
=	1.23

Croda International (LSE:CRDA) 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.

Croda International'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
	=	380.35	/	466.1	*	365 / 2
	=	148.92

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.

Croda International'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 )
	=	380.35	/	813.6
	=	0.47

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.

Croda International Inventory Turnover Related Terms

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Croda International (LSE:CRDA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Croda International PLC (LSE:CRDA) » Definitions » Inventory Turnover

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Traded in Other Exchanges

COIHY:USA COIHF:USA CRDAl:UK 6CMB:Germany

Address

Cowick Hall, Snaith, Goole, East Yorkshire, GBR, DN14 9AA

Website

https://www.croda.com

Croda is a British specialty chemicals company with 60% of sales outside Europe. Croda operates through three segments: consumer care, life sciences, and industrial specialties. Consumer care produces specialty and active ingredients for cosmetics and skincare/haircare and also flavors and fragrances. The life sciences business manufactures products for healthcare and agrochemicals. The company sold the majority of its industrial businesses to Cargill in 2022, retaining only a subsegment of the business (housed under the industrial specialties segment) that supports the other two segments and sells their byproducts.

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