On Holding AG (On Holding AG) Inventory Turnover : 0.46 (As of Dec. 2023)

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What is On Holding AG 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. On Holding AG's Cost of Goods Sold for the three months ended in Dec. 2023 was $205 Mil. On Holding AG's Average Total Inventories for the quarter that ended in Dec. 2023 was $442 Mil. On Holding AG's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.46.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. On Holding AG's Days Inventory for the three months ended in Dec. 2023 was 197.08.

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. On Holding AG's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.86.

On Holding AG Inventory Turnover Historical Data

The historical data trend for On Holding AG'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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On Holding AG Inventory Turnover Chart

On Holding AG Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

2.78

2.71

2.44

2.02

2.00

On Holding AG Quarterly Data
	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial											0.47	0.41	0.40	0.45	0.46

On Holding AG Inventory Turnover Calculation

On Holding AG's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	838.228	/ (	(424.646	+	412.234)	/	2 )
=	838.228	/	418.44
=	2.00

On Holding AG'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 )
=	204.671	/ (	(471.876	+	412.234)	/	2 )
=	204.671	/	442.055
=	0.46

On Holding AG (NYSE:ONON) 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.

On Holding AG'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
	=	442.055	/	204.671	*	365 / 4
	=	197.08

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.

On Holding AG'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 )
	=	442.055	/	516.998
	=	0.86

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.

On Holding AG Inventory Turnover Related Terms

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On Holding AG (On Holding AG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » On Holding AG (NYSE:ONON) » Definitions » Inventory Turnover

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Traded in Other Exchanges

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Address

Forrlibuckstrasse 190, Zurich, CHE, 8005

Website

https://www.on-running.com

On Holding AG is a premium performance sports brand rooted in technology, design, and impact. Its shoe, apparel, and accessories products are designed primarily for athletic use, casual, or leisure purposes. It does not manufacture the products or the raw materials and rely instead on third-party suppliers and contract manufacturers. Geographically, it derives a majority of its revenue from North America.