Shah Alloys (NSE:SHAHALLOYS) Inventory Turnover : 1.21 (As of Dec. 2023)

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What is Shah Alloys 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. Shah Alloys's Cost of Goods Sold for the three months ended in Dec. 2023 was ₹1,193 Mil. Shah Alloys's Average Total Inventories for the quarter that ended in Dec. 2023 was ₹985 Mil. Shah Alloys's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.21.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Shah Alloys's Days Inventory for the three months ended in Dec. 2023 was 75.32.

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. Shah Alloys's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.69.

Shah Alloys Inventory Turnover Historical Data

The historical data trend for Shah Alloys'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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Shah Alloys Inventory Turnover Chart

Shah Alloys Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Inventory Turnover

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3.91

4.45

5.28

7.01

4.50

Shah Alloys 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															1.44	1.26	1.12	1.43	1.21

Shah Alloys Inventory Turnover Calculation

Shah Alloys'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 )
=	5104.895	/ (	(1181.014	+	1087.881)	/	2 )
=	5104.895	/	1134.4475
=	4.50

Shah Alloys'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 )
=	1192.8	/ (	(984.6	+	0)	/	1 )
=	1192.8	/	984.6
=	1.21

Shah Alloys (NSE:SHAHALLOYS) 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.

Shah Alloys'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
	=	984.6	/	1192.8	*	365 / 4
	=	75.32

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.

Shah Alloys'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 )
	=	984.6	/	1428.2
	=	0.69

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.

Shah Alloys Inventory Turnover Related Terms

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Shah Alloys (NSE:SHAHALLOYS) Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Shah Alloys Ltd (NSE:SHAHALLOYS) » Definitions » Inventory Turnover

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513436:India

Address

Shah Alloys Corporate House, Sola-Kalol Road, Village Santej, Taluka Kalol, Gandhinagar, GJ, IND, 382 721

Website

http://www.shahalloys.com

Shah Alloys Ltd manufactures and supplies steel in India. The company is engaged in manufacturing of Stainless steel, Alloys and Special steel, Carbon/mild steel and Armour steel in Flat and long products. The product offered by the group includes hot rolled coils, hot rolled sheets, and plates, cold rolled coils and sheets, hot rolled round bars, hot rolled flat bars, angles, bright/peeled bars, beams, and angles. The firm generates a majority of its revenue from the sale of Iron and Steel products which includes Bars, Beams, Flat, Plate and Coil, Slab and Billets.

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