Jiangsu Huachang Chemical Co (SZSE:002274) Inventory Turnover : 2.76 (As of Dec. 2023)

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What is Jiangsu Huachang Chemical 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. Jiangsu Huachang Chemical Co's Cost of Goods Sold for the three months ended in Dec. 2023 was ¥1,725 Mil. Jiangsu Huachang Chemical Co's Average Total Inventories for the quarter that ended in Dec. 2023 was ¥625 Mil. Jiangsu Huachang Chemical Co's Inventory Turnover for the quarter that ended in Dec. 2023 was 2.76.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Jiangsu Huachang Chemical Co's Days Inventory for the three months ended in Dec. 2023 was 33.03.

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. Jiangsu Huachang Chemical Co's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.28.

Jiangsu Huachang Chemical Co Inventory Turnover Historical Data

The historical data trend for Jiangsu Huachang Chemical 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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Jiangsu Huachang Chemical Co Inventory Turnover Chart

Jiangsu Huachang Chemical Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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10.11

10.25

10.57

9.23

9.12

Jiangsu Huachang Chemical 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															2.15	2.10	2.60	2.63	2.76

Jiangsu Huachang Chemical Co Inventory Turnover Calculation

Jiangsu Huachang Chemical 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 )
=	6782.348	/ (	(826.54	+	661.262)	/	2 )
=	6782.348	/	743.901
=	9.12

Jiangsu Huachang Chemical 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 )
=	1725.103	/ (	(587.776	+	661.262)	/	2 )
=	1725.103	/	624.519
=	2.76

Jiangsu Huachang Chemical Co (SZSE:002274) 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.

Jiangsu Huachang Chemical 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
	=	624.519	/	1725.103	*	365 / 4
	=	33.03

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.

Jiangsu Huachang Chemical 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 )
	=	624.519	/	2218.202
	=	0.28

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.

Jiangsu Huachang Chemical Co Inventory Turnover Related Terms

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Jiangsu Huachang Chemical Co (SZSE:002274) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » Jiangsu Huachang Chemical Co Ltd (SZSE:002274) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

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Address

No. 1 Nanhai Road, Yangzi River International Chemical Industrial Park, Jingang Town Duty-Free Zone, Jiangsu Province, Zhangjiagang, CHN, 215634

Website

http://www.huachangchem.cn

Jiangsu Huachang Chemical Co Ltd is a China based manufacturer and distributor of chemical fertilizers, pure soda and fine chemical products. Its product portfolio includes agrochemicals like synthetic ammonia, Urea ammonium chloride, mixed fertilizer; basic chemicals like sodium carbonate; and fine chemicals and biochemical products like polypeptide, ethylene imine, refined methanol, sodium borohydride and amino acid series, and other products.

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