Ram Ratna Wires (NSE:RAMRAT) Inventory Turnover : 3.71 (As of Mar. 2024)

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What is Ram Ratna Wires 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. Ram Ratna Wires's Cost of Goods Sold for the three months ended in Mar. 2024 was ₹7,273 Mil. Ram Ratna Wires's Average Total Inventories for the quarter that ended in Mar. 2024 was ₹1,959 Mil. Ram Ratna Wires's Inventory Turnover for the quarter that ended in Mar. 2024 was 3.71.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Ram Ratna Wires's Days Inventory for the three months ended in Mar. 2024 was 24.58.

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. Ram Ratna Wires's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.24.

Ram Ratna Wires Inventory Turnover Historical Data

The historical data trend for Ram Ratna Wires'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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Ram Ratna Wires Inventory Turnover Chart

Ram Ratna Wires Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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12.75

11.73

16.00

15.37

14.17

Ram Ratna Wires 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															3.50	3.55	4.36	4.02	3.71

Ram Ratna Wires Inventory Turnover Calculation

Ram Ratna Wires'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 )
=	27131.198	/ (	(1869.527	+	1958.895)	/	2 )
=	27131.198	/	1914.211
=	14.17

Ram Ratna Wires'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 )
=	7273.485	/ (	(0	+	1958.895)	/	1 )
=	7273.485	/	1958.895
=	3.71

Ram Ratna Wires (NSE:RAMRAT) 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.

Ram Ratna Wires'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
	=	1958.895	/	7273.485	*	365 / 4
	=	24.58

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.

Ram Ratna Wires'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 )
	=	1958.895	/	8033.859
	=	0.24

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.

Ram Ratna Wires Inventory Turnover Related Terms

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Ram Ratna Wires (NSE:RAMRAT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Ram Ratna Wires Ltd (NSE:RAMRAT) » Definitions » Inventory Turnover

Traded in Other Exchanges

522281:India

Address

Bhailal Amin Marg, Gorwa, Ground Floor, Alembic Business Park (West), Vadodara, GJ, IND, 390003

Website

https://www.rrshramik.com

Ram Ratna Wires Ltd engages in the manufacture and sale of enameled copper winding wire and strips. Its products include enameled copper wire, enameled copper strips, enameled aluminum wires, submersible flat cable, corona resistant winding wires, and submersible winding wire. Its segments are Enamelled wires and strips; Copper tubes and pipes and Other. Geographically, it derives a majority of revenue from India.

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