Elgi Equipments (NSE:ELGIEQUIP) Inventory Turnover : 0.64 (As of Dec. 2023)

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What is Elgi Equipments 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. Elgi Equipments's Cost of Goods Sold for the three months ended in Dec. 2023 was ₹4,016 Mil. Elgi Equipments's Average Total Inventories for the quarter that ended in Dec. 2023 was ₹6,288 Mil. Elgi Equipments's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.64.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Elgi Equipments's Days Inventory for the three months ended in Dec. 2023 was 142.87.

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. Elgi Equipments's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.77.

Elgi Equipments Inventory Turnover Historical Data

The historical data trend for Elgi Equipments'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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Elgi Equipments Inventory Turnover Chart

Elgi Equipments Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Inventory Turnover

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3.79

3.20

3.04

3.34

2.87

Elgi Equipments Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															0.63	0.73	0.59	0.62	0.64

Elgi Equipments Inventory Turnover Calculation

Elgi Equipments'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 )
=	15575.72	/ (	(4830.56	+	6023.63)	/	2 )
=	15575.72	/	5427.095
=	2.87

Elgi Equipments'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: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	4016.11	/ (	(6287.98	+	0)	/	1 )
=	4016.11	/	6287.98
=	0.64

Elgi Equipments (NSE:ELGIEQUIP) 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.

Elgi Equipments's Days Inventory for the three 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
	=	6287.98	/	4016.11	*	365 / 4
	=	142.87

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.

Elgi Equipments'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 )
	=	6287.98	/	8218.3
	=	0.77

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.

Elgi Equipments Inventory Turnover Related Terms

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Elgi Equipments (NSE:ELGIEQUIP) Business Description

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GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Elgi Equipments Ltd (NSE:ELGIEQUIP) » Definitions » Inventory Turnover

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522074:India

Address

Trichy Road, Elgi Industrial Complex III, Singanallur, Coimbatore, TN, IND, 641 005

Website

https://www.elgi.com

Elgi Equipments Ltd manufactures air compressors and compressed air systems. The segment in which the group operates includes Air Compressors and Automotive Equipment. Its products include piston compressors, electric lubricated screw compressors, electric oil-free screw compressors, portable compressors, railway compressors and air accessories. Geographically, it derives a majority of its revenue is from India and also has a presence in the United States of America, Italy, Australia, and Other Countries. It serves Textiles; Manufacturing; Pharmaceutical; Agriculture and Mining. The company generates maximum revenue from the Air Compressors segment.

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