Rama Telecom (NSE:RTL) Inventory Turnover: 4.28 (As of Mar. 2025)


NSE:RTL Rama Telecom Ltd NSE:RTL
18 GF Score
Price ₹76.40
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What is Rama Telecom Inventory Turnover?

Rama Telecom NSE:RTL +0.53% 18 Inventory Turnover is 4.28 as of Mar. 2025. GuruFocus rates NSE:RTL with a GF Score™ of 18/100.

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. Rama Telecom's Cost of Goods Sold for the six months ended in Mar. 2025 was ₹159.8 Mil. Rama Telecom's Average Total Inventories for the quarter that ended in Mar. 2025 was ₹37.3 Mil. Rama Telecom's Inventory Turnover for the quarter that ended in Mar. 2025 was 4.28.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Rama Telecom's Days Inventory for the six months ended in Mar. 2025 was 42.63.

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. Rama Telecom's Inventory-to-Revenue for the quarter that ended in Mar. 2025 was 0.16.

Rama Telecom  (NSE:RTL) 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.

Rama Telecom's Days Inventory for the six months ended in Mar. 2025 is calculated as:

Days Inventory =Average Total Inventories (Q: Mar. 2025 )/Cost of Goods Sold (Q: Mar. 2025 )*Days in Period
=37.322/159.765*365 / 2
=42.63

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.

Rama Telecom's Inventory to Revenue for the quarter that ended in Mar. 2025 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Mar. 2025 ) / Revenue (Q: Mar. 2025 )
=37.322 / 233.783
=0.16

* 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.

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.

Rama Telecom Inventory Turnover Related Terms

Rama Telecom Inventory Turnover Historical Data

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The historical data trend for Rama Telecom'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.

Rama Telecom Inventory Turnover Chart

Rama Telecom Annual Data
Trend Mar22 Mar23 Mar24 Mar25
Inventory Turnover
255.68 57.17 34.24 9.50

Rama Telecom Semi-Annual Data
Mar22 Mar23 Mar24 Sep24 Mar25
Inventory Turnover 0.00 0.00 0.00 9.81 4.28
NSE:RTL
18GF Score
Rama Telecom Ltd NSE:RTL
Inventory Turnover is just one metric. See GF Score™, valuation, warning signs, and more.
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Rama Telecom Inventory Turnover Calculation

Rama Telecom's Inventory Turnover for the fiscal year that ended in Mar. 2025 is calculated as

Inventory Turnover (A: Mar. 2025 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Mar. 2025 ) / ((Total Inventories (A: Mar. 2024 ) + Total Inventories (A: Mar. 2025 )) / count )
=299.181 / ((8.369 + 54.591) / 2 )
=299.181 / 31.48
=9.50

Rama Telecom's Inventory Turnover for the quarter that ended in Mar. 2025 is calculated as

Inventory Turnover (Q: Mar. 2025 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Mar. 2025 ) / ((Total Inventories (Q: Sep. 2024 ) + Total Inventories (Q: Mar. 2025 )) / count )
=159.765 / ((20.053 + 54.591) / 2 )
=159.765 / 37.322
=4.28

* 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.

Frequently Asked Questions Learn more about Inventory Turnover →
What does a Inventory Turnover of 4.28 mean?
Rama Telecom (NSE:RTL) has a Inventory Turnover of 4.28 as of Mar. 2025. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Rama Telecom and its competitors.
Is Rama Telecom's Inventory Turnover too high?
Rama Telecom's current Inventory Turnover is 4.28. Overall, Rama Telecom has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Rama Telecom's Inventory Turnover compare to TMUS and VZ?
Rama Telecom's Inventory Turnover of 4.28 can be compared against companies in the Telecommunication Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Inventory Turnover for a Telecommunication Services company?
A good Inventory Turnover depends on the Telecommunication Services industry context. However, Inventory Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Inventory Turnover mean?
A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Rama Telecom and its competitors. Rama Telecom's current Inventory Turnover is 4.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rama Telecom stock overvalued right now?
Rama Telecom (NSE:RTL) has a current Inventory Turnover of 4.28. The current Inventory Turnover is 4.28. Rama Telecom's overall GF Score™ is 18/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Inventory Turnover calculated?
Inventory Turnover is calculated from a company's financial statements. For Rama Telecom (NSE:RTL), the current Inventory Turnover is 4.28 as of Mar. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Rama Telecom Business Description

Address Kamalalaya Centre 156A, Lenin Sarani, Room No-302, 3rd Floor, Kolkata, WB, IND, 700013
Rama Telecom Ltd is a technology-driven engineering company with expertise in optical fiber, providing end to end customized networking solutions in the telecom forefront. The company continuously supports its services to the Railways, Telecom, Petroleum and Airport sector. Its business services are provided to the Railway Sector and Telecom Sector. It operates in a single Business segment, which is the business of Trading & installation works of contractors. The company provides customized E2E networking solutions in the Telecom & Datacom forefront.
18GF Score

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Inventory Turnover is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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