Hunan Er-Kang Pharmaceutical Co (SZSE:300267) Inventory Turnover : 0.28 (As of Mar. 2024)

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What is Hunan Er-Kang Pharmaceutical 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. Hunan Er-Kang Pharmaceutical Co's Cost of Goods Sold for the three months ended in Mar. 2024 was ¥193 Mil. Hunan Er-Kang Pharmaceutical Co's Average Total Inventories for the quarter that ended in Mar. 2024 was ¥696 Mil. Hunan Er-Kang Pharmaceutical Co's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.28.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Hunan Er-Kang Pharmaceutical Co's Days Inventory for the three months ended in Mar. 2024 was 328.60.

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. Hunan Er-Kang Pharmaceutical Co's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 2.53.

Hunan Er-Kang Pharmaceutical Co Inventory Turnover Historical Data

The historical data trend for Hunan Er-Kang Pharmaceutical 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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Hunan Er-Kang Pharmaceutical Co Inventory Turnover Chart

Hunan Er-Kang Pharmaceutical Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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2.36

2.32

2.33

1.89

1.88

Hunan Er-Kang Pharmaceutical Co 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															0.51	0.43	0.39	0.46	0.28

Hunan Er-Kang Pharmaceutical Co Inventory Turnover Calculation

Hunan Er-Kang Pharmaceutical 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 )
=	1418.932	/ (	(821.345	+	691.603)	/	2 )
=	1418.932	/	756.474
=	1.88

Hunan Er-Kang Pharmaceutical Co'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 )
=	193.402	/ (	(691.603	+	701.295)	/	2 )
=	193.402	/	696.449
=	0.28

Hunan Er-Kang Pharmaceutical Co (SZSE:300267) 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.

Hunan Er-Kang Pharmaceutical Co'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
	=	696.449	/	193.402	*	365 / 4
	=	328.60

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.

Hunan Er-Kang Pharmaceutical Co'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 )
	=	696.449	/	275.789
	=	2.53

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.

Hunan Er-Kang Pharmaceutical Co Inventory Turnover Related Terms

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Hunan Er-Kang Pharmaceutical Co (SZSE:300267) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Hunan Er-Kang Pharmaceutical Co Ltd (SZSE:300267) » Definitions » Inventory Turnover

Traded in Other Exchanges

N/A

Address

Kangping Road 167, National Economic and Technological Development Zone, Liuyang Changsha, Hunan, CHN, 410331

Website

http://www.hnerkang.com

Hunan Er-Kang Pharmaceutical Co Ltd develops, produces and sells pharmaceutical products in China. The company's main products include pharmaceutical excipients and antibiotics. It offers pharmaceutical excipients, APIs and finished drug products. The pharmaceutical excipients include products such as glycerol, ethanol pharmaceutically, acceptable propylene glycol, sodium hydroxide, and pharmaceutically acceptable sugar. The company's finished drugs primarily include sulbenicillin sodium for injection and compound liquorice tablets. Its APIs include glycerin, dilute hydrochloric acid, dihydroxypropyl theophylline, sulbenicillin sodium, calamine powder, sulfadiazine, sulphaguanidine, TMP, and resorcinol. Geographically, all the activities are carried out through China.

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