Ramco Cements (NSE:RAMCOCEM) Inventory Turnover : 1.26 (As of Mar. 2024)

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What is Ramco Cements 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. Ramco Cements's Cost of Goods Sold for the three months ended in Mar. 2024 was ₹12,389 Mil. Ramco Cements's Average Total Inventories for the quarter that ended in Mar. 2024 was ₹9,835 Mil. Ramco Cements's Inventory Turnover for the quarter that ended in Mar. 2024 was 1.26.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Ramco Cements's Days Inventory for the three months ended in Mar. 2024 was 72.44.

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. Ramco Cements's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.37.

Ramco Cements Inventory Turnover Historical Data

The historical data trend for Ramco Cements'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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Ramco Cements Inventory Turnover Chart

Ramco Cements Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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3.82

3.22

3.80

4.66

4.57

Ramco Cements Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															1.47	1.22	0.42	0.83	1.26

Ramco Cements Inventory Turnover Calculation

Ramco Cements'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 )
=	42693.8	/ (	(8836.1	+	9834.8)	/	2 )
=	42693.8	/	9335.45
=	4.57

Ramco Cements's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	12389.3	/ (	(0	+	9834.8)	/	1 )
=	12389.3	/	9834.8
=	1.26

Ramco Cements (NSE:RAMCOCEM) 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.

Ramco Cements's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	9834.8	/	12389.3	*	365 / 4
	=	72.44

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.

Ramco Cements's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	9834.8	/	26782.4
	=	0.37

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.

Ramco Cements Inventory Turnover Related Terms

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Ramco Cements (NSE:RAMCOCEM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Ramco Cements Ltd (NSE:RAMCOCEM) » Definitions » Inventory Turnover

Traded in Other Exchanges

500260:India

Address

98-A, Dr. Radhakrishnan Road, Mylapore, Chennai, TN, IND, 600 004

Website

https://www.ramcocements.in

Ramco Cements Ltd, part of Ramco Group, is a producer of Portland cement. The company owns grinding units and packing terminals, as well as integrated cement plants. Its cement is sold under the Ramco Supergrade brand in India. Other products include ready-mix concrete and dry-mortar products. Ramco Cements also operates wind farms in India.

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