The AZEK Co (STU:4N1) Inventory Turnover : 0.61 (As of Dec. 2023)

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What is The AZEK 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. The AZEK Co's Cost of Goods Sold for the three months ended in Dec. 2023 was €137 Mil. The AZEK Co's Average Total Inventories for the quarter that ended in Dec. 2023 was €224 Mil. The AZEK Co's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.61.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. The AZEK Co's Days Inventory for the three months ended in Dec. 2023 was 149.26.

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. The AZEK Co's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 1.01.

The AZEK Co Inventory Turnover Historical Data

The historical data trend for The AZEK 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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The AZEK Co Inventory Turnover Chart

The AZEK Co Annual Data

Trend

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Inventory Turnover

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4.92

4.76

4.95

4.12

3.43

The AZEK Co 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															0.53	0.94	1.07	1.09	0.61

The AZEK Co Inventory Turnover Calculation

The AZEK Co's Inventory Turnover for the fiscal year that ended in Sep. 2023 is calculated as

	Inventory Turnover (A: Sep. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Sep. 2023 )	/ (	(Total Inventories (A: Sep. 2022 )	+	Total Inventories (A: Sep. 2023 ))	/	count )
=	873.905	/ (	(302.904	+	207.172)	/	2 )
=	873.905	/	255.038
=	3.43

The AZEK Co'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 )
=	136.643	/ (	(207.172	+	239.852)	/	2 )
=	136.643	/	223.512
=	0.61

The AZEK Co (STU:4N1) 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.

The AZEK Co'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
	=	223.512	/	136.643	*	365 / 4
	=	149.26

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.

The AZEK Co'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 )
	=	223.512	/	220.487
	=	1.01

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.

The AZEK Co Inventory Turnover Related Terms

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The AZEK Co (STU:4N1) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » The AZEK Co Inc (STU:4N1) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

AZEK:USA 4N1:Germany

Address

1330 W Fulton Street, Suite 350, Chicago, IL, USA, 60607

Website

https://www.azekco.com

The AZEK Co Inc is a designer and manufacturer of beautiful, low maintenance and environmentally sustainable products focused on the fast-growing Outdoor Living market. Its portfolio of products includes decks, rail, trim, outdoor furniture among others. The company operates in two segments which are Residential and Commercial. It generates maximum revenue from the Residential segment. The company's brand includes TimberTech; AZEK; Versatex, Ultralox, StruXure, and Intex.

The AZEK Co (STU:4N1) Headlines

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