Arabian Petroleum (NSE:ARABIAN) Inventory Turnover : 8.09 (As of Mar. 2023)

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What is Arabian Petroleum 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. Arabian Petroleum's Cost of Goods Sold for the six months ended in Mar. 2023 was ₹2,145 Mil. Arabian Petroleum's Average Total Inventories for the quarter that ended in Mar. 2023 was ₹265 Mil. Arabian Petroleum's Inventory Turnover for the quarter that ended in Mar. 2023 was 8.09.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Arabian Petroleum's Days Inventory for the six months ended in Mar. 2023 was 22.56.

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. Arabian Petroleum's Inventory-to-Revenue for the quarter that ended in Mar. 2023 was 0.11.

Arabian Petroleum Inventory Turnover Historical Data

The historical data trend for Arabian Petroleum'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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Arabian Petroleum Inventory Turnover Chart

Arabian Petroleum Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Mar23

Inventory Turnover

9.62

8.99

7.78

7.71

8.09

Arabian Petroleum Semi-Annual Data
	Mar19	Mar20	Mar21	Mar22	Mar23
Inventory Turnover	9.62	8.99	7.78	7.71	8.09

Arabian Petroleum Inventory Turnover Calculation

Arabian Petroleum's Inventory Turnover for the fiscal year that ended in Mar. 2023 is calculated as

	Inventory Turnover (A: Mar. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2023 )	/ (	(Total Inventories (A: Mar. 2022 )	+	Total Inventories (A: Mar. 2023 ))	/	count )
=	2145.164	/ (	(272.902	+	257.436)	/	2 )
=	2145.164	/	265.169
=	8.09

Arabian Petroleum's Inventory Turnover for the quarter that ended in Mar. 2023 is calculated as

	Inventory Turnover (Q: Mar. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2023 )	/ (	(Total Inventories (Q: Mar. 2022 )	+	Total Inventories (Q: Mar. 2023 ))	/	count )
=	2145.164	/ (	(272.902	+	257.436)	/	2 )
=	2145.164	/	265.169
=	8.09

Arabian Petroleum (NSE:ARABIAN) 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.

Arabian Petroleum's Days Inventory for the six months ended in Mar. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2023 )	/	Cost of Goods Sold (Q: Mar. 2023 )	*	Days in Period
	=	265.169	/	2145.164	*	365 / 2
	=	22.56

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.

Arabian Petroleum's Inventory to Revenue for the quarter that ended in Mar. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2023 )	/	Revenue (Q: Mar. 2023 )
	=	265.169	/	2428.367
	=	0.11

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.

Arabian Petroleum Inventory Turnover Related Terms

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Arabian Petroleum (NSE:ARABIAN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Arabian Petroleum Ltd (NSE:ARABIAN) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

Plot 14-B, Morivali M.I.D.C, Opp. Positive Packaging, Ambernath West, Thane, MH, IND, 421505

Website

https://www.arabianpetroleum.co.in

Arabian Petroleum Ltd is a company engaged in the business of manufacturing wide range of Lubricants including Specialty Oils, Coolants etc ,used for Industrial and Automotive applications. Our business is categorized into two distinctive product division which includes Automotive Lubricants - Arzol and Industrial Lubricants - SPL.

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