Prakash Pipes (NSE:PPL) Inventory Turnover : 1.82 (As of Dec. 2023)

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What is Prakash Pipes 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. Prakash Pipes's Cost of Goods Sold for the three months ended in Dec. 2023 was ₹1,030 Mil. Prakash Pipes's Average Total Inventories for the quarter that ended in Dec. 2023 was ₹565 Mil. Prakash Pipes's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.82.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Prakash Pipes's Days Inventory for the three months ended in Dec. 2023 was 50.04.

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. Prakash Pipes's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.36.

Prakash Pipes Inventory Turnover Historical Data

The historical data trend for Prakash Pipes'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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Prakash Pipes Inventory Turnover Chart

Prakash Pipes Annual Data

Trend

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Inventory Turnover

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15.08

12.48

8.38

8.20

9.83

Prakash Pipes 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															2.51	2.29	2.57	2.15	1.82

Prakash Pipes Inventory Turnover Calculation

Prakash Pipes'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 )
=	5322.9	/ (	(591.7	+	491.4)	/	2 )
=	5322.9	/	541.55
=	9.83

Prakash Pipes'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 )
=	1030	/ (	(564.8	+	0)	/	1 )
=	1030	/	564.8
=	1.82

Prakash Pipes (NSE:PPL) 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.

Prakash Pipes'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
	=	564.8	/	1030	*	365 / 4
	=	50.04

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.

Prakash Pipes'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 )
	=	564.8	/	1582.2
	=	0.36

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.

Prakash Pipes Inventory Turnover Related Terms

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Prakash Pipes (NSE:PPL) Business Description

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GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Prakash Pipes Ltd (NSE:PPL) » Definitions » Inventory Turnover

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542684:India

Address

Srivan, Bijwasan, New Delhi, IND, 110061

Website

https://www.prakashplastics.in

Prakash Pipes Ltd is engaged in the manufacture of PVC pipes and fittings. It offers a products such as Agri Pipes, Column Pipes, Plumbing Pipes, Casing Pipes, SWR Pipes, Garden Pipes and their related Fittings. Its segments are PVC Pipe and fitting and Flexible Packaging. It generates the majority of its revenue from PVC Pipe and fitting.