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Paper Home Co (SAU:9576) Inventory Turnover : 4.48 (As of Jun. 2024)


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What is Paper Home Co 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. Paper Home Co's Cost of Goods Sold for the six months ended in Jun. 2024 was ﷼32.39 Mil. Paper Home Co's Average Total Inventories for the quarter that ended in Jun. 2024 was ﷼7.23 Mil. Paper Home Co's Inventory Turnover for the quarter that ended in Jun. 2024 was 4.48.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Paper Home Co's Days Inventory for the six months ended in Jun. 2024 was 40.76.

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. Paper Home Co's Inventory-to-Revenue for the quarter that ended in Jun. 2024 was 0.16.

Paper Home Co Inventory Turnover Historical Data

The historical data trend for Paper Home Co'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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Paper Home Co Inventory Turnover Chart

Paper Home Co Annual Data
Trend Dec22 Dec23
Inventory Turnover
8.25 7.88

Paper Home Co Semi-Annual Data
Dec22 Jun23 Dec23 Jun24
Inventory Turnover - 4.01 3.86 4.48

Paper Home Co Inventory Turnover Calculation

Paper Home Co'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 )
=67.433 / ((9.258 + 7.856) / 2 )
=67.433 / 8.557
=7.88

Paper Home Co's Inventory Turnover for the quarter that ended in Jun. 2024 is calculated as

Inventory Turnover (Q: Jun. 2024 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Jun. 2024 ) / ((Total Inventories (Q: Dec. 2023 ) + Total Inventories (Q: Jun. 2024 )) / count )
=32.386 / ((7.856 + 6.611) / 2 )
=32.386 / 7.2335
=4.48

* 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.

Paper Home Co  (SAU:9576) 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.

Paper Home Co's Days Inventory for the six months ended in Jun. 2024 is calculated as:

Days Inventory =Average Total Inventories (Q: Jun. 2024 )/Cost of Goods Sold (Q: Jun. 2024 )*Days in Period
=7.2335/32.386*365 / 2
=40.76

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.

Paper Home Co's Inventory to Revenue for the quarter that ended in Jun. 2024 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=7.2335 / 44.862
=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.

Paper Home Co Inventory Turnover Related Terms

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Paper Home Co Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Paper Home Co (SAU:9576) » Definitions » Inventory Turnover
Comparable Companies
SAU:9580 SAU:2180 SAU:3007 SAU:1201 SAU:2150 IP SW PKG BALL AMCR AVY CCK TSX:CCL.A BERY GPK XSWX:SIGN SLGN REYN SON SEE
Traded in Other Exchanges
N/A
Address
Al-Rafaya Industrial Area, P.O. Box 21629, Riyadh, SAU, 11485
Website
https://www.paperhome.com.sa
Paper Home Co is a Saudi based corrugated cardboard company. It is in the paper industry whose activities are to manufacture of cardboard boxes, boxes, and folded and single bags from paper or cardboard.

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