Amara Raja Energy & Mobility (NSE:ARE&M) Inventory Turnover : 1.06 (As of Sep. 2024)

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What is Amara Raja Energy & Mobility 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. Amara Raja Energy & Mobility's Cost of Goods Sold for the three months ended in Sep. 2024 was ₹21,942 Mil. Amara Raja Energy & Mobility's Average Total Inventories for the quarter that ended in Sep. 2024 was ₹20,636 Mil. Amara Raja Energy & Mobility's Inventory Turnover for the quarter that ended in Sep. 2024 was 1.06.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Amara Raja Energy & Mobility's Days Inventory for the three months ended in Sep. 2024 was 85.82.

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. Amara Raja Energy & Mobility's Inventory-to-Revenue for the quarter that ended in Sep. 2024 was 0.63.

Amara Raja Energy & Mobility Inventory Turnover Historical Data

The historical data trend for Amara Raja Energy & Mobility'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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Amara Raja Energy & Mobility Inventory Turnover Chart

Amara Raja Energy & Mobility Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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4.12

3.75

3.85

4.04

4.35

Amara Raja Energy & Mobility 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															1.13	1.17	0.98	1.15	1.06

Amara Raja Energy & Mobility Inventory Turnover Calculation

Amara Raja Energy & Mobility's Inventory Turnover for the fiscal year that ended in Mar. 2024 is calculated as

	Inventory Turnover (A: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2024 )	/ (	(Total Inventories (A: Mar. 2023 )	+	Total Inventories (A: Mar. 2024 ))	/	count )
=	80120.7	/ (	(17339.6	+	19484.4)	/	2 )
=	80120.7	/	18412
=	4.35

Amara Raja Energy & Mobility'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 )
=	21941.5	/ (	(0	+	20635.8)	/	1 )
=	21941.5	/	20635.8
=	1.06

Amara Raja Energy & Mobility (NSE:ARE&M) 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.

Amara Raja Energy & Mobility'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
	=	20635.8	/	21941.5	*	365 / 4
	=	85.82

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.

Amara Raja Energy & Mobility'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 )
	=	20635.8	/	32507.3
	=	0.63

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.

Amara Raja Energy & Mobility Inventory Turnover Related Terms

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Amara Raja Energy & Mobility Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Amara Raja Energy & Mobility Ltd (NSE:ARE&M) » Definitions » Inventory Turnover

Traded in Other Exchanges

500008:India

Address

Terminal A, 1-18/1/AMR/NR, Nanakramguda Gachibowli, Hyderabad, TG, IND, 500032

Website

https://www.amararajaeandm.com

Amara Raja Energy & Mobility Ltd is an India-based battery maker for both industrial and automotive applications in the Indian storage battery industry. It offers Li-ion cells, battery packs, and charging solutions for Light Electric Vehicles and the telecom industry. The company's reportable segments are; Lead acid and allied products, and Others. The majority of its revenue is generated from the Lead acid and allied products segment. The others segment includes predominantly the manufacture and sale of new energy business-related products. Geographically, the derives its key revenue from India and also exports its products to various other countries.

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