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SKF AB (SKF AB) Inventory Turnover : 0.73 (As of Mar. 2024)


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What is SKF AB 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. SKF AB's Cost of Goods Sold for the three months ended in Mar. 2024 was $1,691 Mil. SKF AB's Average Total Inventories for the quarter that ended in Mar. 2024 was $2,310 Mil. SKF AB's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.73.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. SKF AB's Days Inventory for the three months ended in Mar. 2024 was 124.65.

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. SKF AB's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.97.


SKF AB Inventory Turnover Historical Data

The historical data trend for SKF AB'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.

* Premium members only.

SKF AB Inventory Turnover Chart

SKF AB Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.55 3.49 3.07 2.90 3.17

SKF AB Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 0.73 0.75 0.73 0.80 0.73

SKF AB Inventory Turnover Calculation

SKF AB'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 )
=7559.371 / ((2510.31 + 2261.153) / 2 )
=7559.371 / 2385.7315
=3.17

SKF AB's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

Inventory Turnover (Q: Mar. 2024 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Mar. 2024 ) / ((Total Inventories (Q: Dec. 2023 ) + Total Inventories (Q: Mar. 2024 )) / count )
=1690.855 / ((2261.153 + 2358.207) / 2 )
=1690.855 / 2309.68
=0.73

* 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.


SKF AB  (OTCPK:SKFRY) 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.

SKF AB's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory =Average Total Inventories (Q: Mar. 2024 )/Cost of Goods Sold (Q: Mar. 2024 )*Days in Period
=2309.68/1690.855*365 / 4
=124.65

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.

SKF AB's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=2309.68 / 2372.326
=0.97

* 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.


SKF AB Inventory Turnover Related Terms

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SKF AB (SKF AB) Business Description

Address
Sven Wingquists Gata 2, Gothenburg, SWE, SE-415 50
SKF's history goes back to the first major patents in ball bearings, when in 1907 it was the first to patent the self-aligning ball bearing. SKF, along with the Schaeffler Group, are the top two global ball bearing suppliers followed by Timken, NSK, NTN, and JTEKT. Combined, these six companies supply about 60% of the world's ball bearings. However, most of them have sector niches as ball bearings for industrial purposes are engineered for specific applications. SKF is based out of Sweden and has a global manufacturing footprint of 106 sites and about 17,000 global distributor locations. The firm operates under two segments: industrials, which has a fairly fragmented customer base; and automotive, which is the opposite, with a concentrated customer base including the likes of Tesla.

SKF AB (SKF AB) Headlines