Applied Industrial Technologies (LTS:0HGR) Inventory Turnover : 1.58 (As of Mar. 2024)

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What is Applied Industrial Technologies 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. Applied Industrial Technologies's Cost of Goods Sold for the three months ended in Mar. 2024 was $808 Mil. Applied Industrial Technologies's Average Total Inventories for the quarter that ended in Mar. 2024 was $512 Mil. Applied Industrial Technologies's Inventory Turnover for the quarter that ended in Mar. 2024 was 1.58.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Applied Industrial Technologies's Days Inventory for the three months ended in Mar. 2024 was 57.82.

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. Applied Industrial Technologies's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.45.

Applied Industrial Technologies Inventory Turnover Historical Data

The historical data trend for Applied Industrial Technologies'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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Applied Industrial Technologies Inventory Turnover Chart

Applied Industrial Technologies Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Inventory Turnover

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5.67

5.52

6.12

6.66

6.57

Applied Industrial Technologies 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															1.52	1.59	1.53	1.48	1.58

Applied Industrial Technologies Inventory Turnover Calculation

Applied Industrial Technologies's Inventory Turnover for the fiscal year that ended in Jun. 2023 is calculated as

	Inventory Turnover (A: Jun. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jun. 2023 )	/ (	(Total Inventories (A: Jun. 2022 )	+	Total Inventories (A: Jun. 2023 ))	/	count )
=	3125.829	/ (	(449.821	+	501.184)	/	2 )
=	3125.829	/	475.5025
=	6.57

Applied Industrial Technologies'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 )
=	808.144	/ (	(520.155	+	503.91)	/	2 )
=	808.144	/	512.0325
=	1.58

Applied Industrial Technologies (LTS:0HGR) 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.

Applied Industrial Technologies'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
	=	512.0325	/	808.144	*	365 / 4
	=	57.82

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.

Applied Industrial Technologies'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 )
	=	512.0325	/	1146.39
	=	0.45

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.

Applied Industrial Technologies Inventory Turnover Related Terms

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Applied Industrial Technologies (LTS:0HGR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Applied Industrial Technologies Inc (LTS:0HGR) » Definitions » Inventory Turnover

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AIT:USA

Address

1 Applied Plaza, Cleveland, OH, USA, 44115

Website

https://www.applied.com

Applied Industrial Technologies Inc is a distributor of industrial products to the maintenance, repair, and operations market and the original equipment manufacturing industry. Further, the company provides engineering and design services for industrial and fluid power applications. The products include bearings, power transmission components, fluid power components and systems, industrial rubber products, linear motion components, safety products, oilfield supplies, and other industrial and maintenance supplies. Fluid products include hydraulic, pneumatic, lubrication, and filtration systems and components. Applied Industrial Technologies operates primarily in North America, Australia, and New Zealand.

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