Essity AB (LTS:0RQC) Inventory Turnover : 1.28 (As of Sep. 2024)

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What is Essity AB 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. Essity AB's Cost of Goods Sold for the three months ended in Sep. 2024 was kr24,312 Mil. Essity AB's Average Total Inventories for the quarter that ended in Sep. 2024 was kr18,962 Mil. Essity AB's Inventory Turnover for the quarter that ended in Sep. 2024 was 1.28.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Essity AB's Days Inventory for the three months ended in Sep. 2024 was 71.17.

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. Essity AB's Inventory-to-Revenue for the quarter that ended in Sep. 2024 was 0.52.

Essity AB Inventory Turnover Historical Data

The historical data trend for Essity AB'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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Essity AB Inventory Turnover Chart

Essity AB Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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5.88

5.12

4.05

4.12

4.48

Essity AB Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Inventory Turnover	Get a 7-Day Free Trial															1.00	1.18	1.29	1.29	1.28

Essity AB Inventory Turnover Calculation

Essity AB'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 )
=	103976	/ (	(28852	+	17523)	/	2 )
=	103976	/	23187.5
=	4.48

Essity AB's Inventory Turnover for the quarter that ended in Sep. 2024 is calculated as

	Inventory Turnover (Q: Sep. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2024 )	/ (	(Total Inventories (Q: Jun. 2024 )	+	Total Inventories (Q: Sep. 2024 ))	/	count )
=	24312	/ (	(19110	+	18814)	/	2 )
=	24312	/	18962
=	1.28

Essity AB (LTS:0RQC) 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.

Essity AB's Days Inventory for the three months ended in Sep. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2024 )	/	Cost of Goods Sold (Q: Sep. 2024 )	*	Days in Period
	=	18962	/	24312	*	365 / 4
	=	71.17

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.

Essity AB's Inventory to Revenue for the quarter that ended in Sep. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2024 )	/	Revenue (Q: Sep. 2024 )
	=	18962	/	36274
	=	0.52

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.

Essity AB Inventory Turnover Related Terms

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Essity AB Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Essity AB (LTS:0RQC) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

ETTYF:USA ESSITY A:Sweden ESSITY B:Sweden ESSITYB:Mexico ESSIBs:UK 0RQD:UK ESWB:Germany

Address

Klarabergsviadukten 63, PO Box 200, Stockholm, SWE, SE-101 23

Website

https://www.essity.com

Essity is a health and hygiene company spun out of Svenska Cellulosa in June 2017. Essity's products span the feminine care, baby care, toilet paper, facial tissue, and wet wipes categories, as well as hand soap, hand sanitizers, and tissue dispensers for institutional customers. Essity also offers medical solutions in the form of wound care, orthopedics, and compression therapy, accounting for around 7% of net sales. Essity operates in 150 markets and generates 60% of its revenue in Europe.

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