Zicom Electronic Security Systems (NSE:ZICOM) Inventory Turnover: 0.26 (As of Sep. 2020)

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NSE:ZICOM Zicom Electronic Security Systems Ltd NSE:ZICOM
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What is Zicom Electronic Security Systems Inventory Turnover?

Zicom Electronic Security Systems NSE:ZICOM 4 Inventory Turnover is 0.26 as of Sep. 2020. GuruFocus rates NSE:ZICOM with a GF Score™ of 4/100.

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. Zicom Electronic Security Systems's Cost of Goods Sold for the six months ended in Sep. 2020 was ₹17.7 Mil. Zicom Electronic Security Systems's Average Total Inventories for the quarter that ended in Sep. 2020 was ₹67.5 Mil. Zicom Electronic Security Systems's Inventory Turnover for the quarter that ended in Sep. 2020 was 0.26.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Zicom Electronic Security Systems's Days Inventory for the six months ended in Sep. 2020 was 695.29.

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. Zicom Electronic Security Systems's Inventory-to-Revenue for the quarter that ended in Sep. 2020 was 0.49.

Zicom Electronic Security Systems  (NSE:ZICOM) 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.

Zicom Electronic Security Systems's Days Inventory for the six months ended in Sep. 2020 is calculated as:

Days Inventory =Average Total Inventories (Q: Sep. 2020 )/Cost of Goods Sold (Q: Sep. 2020 )*Days in Period
=67.4835/17.713*365 / 2
=695.29

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.

Zicom Electronic Security Systems's Inventory to Revenue for the quarter that ended in Sep. 2020 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Sep. 2020 ) / Revenue (Q: Sep. 2020 )
=67.4835 / 137.334
=0.49

* 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.

Zicom Electronic Security Systems Inventory Turnover Related Terms

Zicom Electronic Security Systems Inventory Turnover Historical Data

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The historical data trend for Zicom Electronic Security Systems'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.

Zicom Electronic Security Systems Inventory Turnover Chart

Zicom Electronic Security Systems Annual Data
Trend Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.81 3.48 1.58 1.39 2.53

Zicom Electronic Security Systems Semi-Annual Data
Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20
Inventory Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.63 0.93 0.37 2.42 0.26
NSE:ZICOM
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Zicom Electronic Security Systems Ltd NSE:ZICOM
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Zicom Electronic Security Systems Inventory Turnover Calculation

Zicom Electronic Security Systems's Inventory Turnover for the fiscal year that ended in Mar. 2020 is calculated as

Inventory Turnover (A: Mar. 2020 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Mar. 2020 ) / ((Total Inventories (A: Mar. 2019 ) + Total Inventories (A: Mar. 2020 )) / count )
=458.6 / ((293.8 + 68.3) / 2 )
=458.6 / 181.05
=2.53

Zicom Electronic Security Systems's Inventory Turnover for the quarter that ended in Sep. 2020 is calculated as

Inventory Turnover (Q: Sep. 2020 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Sep. 2020 ) / ((Total Inventories (Q: Mar. 2020 ) + Total Inventories (Q: Sep. 2020 )) / count )
=17.713 / ((68.3 + 66.667) / 2 )
=17.713 / 67.4835
=0.26

* 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 0.26 mean?
Zicom Electronic Security Systems (NSE:ZICOM) has a Inventory Turnover of 0.26 as of Sep. 2020. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Zicom Electronic Security Systems and its competitors.
Is Zicom Electronic Security Systems' Inventory Turnover too high?
Zicom Electronic Security Systems' current Inventory Turnover is 0.26. Overall, Zicom Electronic Security Systems has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Zicom Electronic Security Systems' Inventory Turnover compare to ALLE and ADT?
Zicom Electronic Security Systems' Inventory Turnover of 0.26 can be compared against companies in the Business 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 Business Services company?
A good Inventory Turnover depends on the Business 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 Zicom Electronic Security Systems and its competitors. Zicom Electronic Security Systems's current Inventory Turnover is 0.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zicom Electronic Security Systems stock overvalued right now?
Zicom Electronic Security Systems (NSE:ZICOM) has a current Inventory Turnover of 0.26. The current Inventory Turnover is 0.26. Zicom Electronic Security Systems' overall GF Score™ is 4/100. 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 Zicom Electronic Security Systems (NSE:ZICOM), the current Inventory Turnover is 0.26 as of Sep. 2020. 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.

Zicom Electronic Security Systems Business Description

Address 45, Chimbai Road, Off Hill Road, Zicom House, Bandra (West), Mumbai, MH, IND, 400050
Zicom Electronic Security Systems Ltd markets and sells electronic security systems and equipment. The company sells, distributes, markets and installs and monitors electronic security systems, gadgets, and equipment and also provides annual maintenance services. Its products portfolio consists of access control systems, CCTV systems, finger print locks, fire alarm systems, intrusion detection systems, and video door phones. Majority of the revenue is derived from the provision of security and safety products and services.
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