Cathay Chemical Works (TPE:1713) Inventory Turnover: 0.61 (As of Dec. 2025)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TPE:1713 Cathay Chemical Works Inc TPE:1713
70 GF Score
Price NT$47.40
GF Value NT$42.72
Valuation Modestly Overvalued
! 6 Warning Signs
View Full Analysis

What is Cathay Chemical Works Inventory Turnover?

Cathay Chemical Works TPE:1713 -1.66% 70 Inventory Turnover is 0.61 as of Dec. 2025. GuruFocus rates TPE:1713 with a GF Score™ of 70/100 and a GF Value™ of NT$42.72 (Modestly Overvalued). The stock has 6 warning signs investors should review.

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. Cathay Chemical Works's Cost of Goods Sold for the three months ended in Dec. 2025 was NT$127.4 Mil. Cathay Chemical Works's Average Total Inventories for the quarter that ended in Dec. 2025 was NT$208.5 Mil. Cathay Chemical Works's Inventory Turnover for the quarter that ended in Dec. 2025 was 0.61.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Cathay Chemical Works's Days Inventory for the three months ended in Dec. 2025 was 149.28.

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. Cathay Chemical Works's Inventory-to-Revenue for the quarter that ended in Dec. 2025 was 1.53.


Cathay Chemical Works  (TPE:1713) 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.

Cathay Chemical Works's Days Inventory for the three months ended in Dec. 2025 is calculated as:

Days Inventory =Average Total Inventories (Q: Dec. 2025 )/Cost of Goods Sold (Q: Dec. 2025 )*Days in Period
=208.4875/127.44*365 / 4
=149.28

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.

Cathay Chemical Works's Inventory to Revenue for the quarter that ended in Dec. 2025 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=208.4875 / 136.401
=1.53

* 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.


Cathay Chemical Works Inventory Turnover Related Terms


Cathay Chemical Works Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Cathay Chemical Works'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.

Cathay Chemical Works Inventory Turnover Chart

Cathay Chemical Works Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.60 1.94 1.86 2.23 2.18

Cathay Chemical Works Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
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 0.60 0.54 0.42 0.47 0.61
TPE:1713
70GF Score
Cathay Chemical Works Inc TPE:1713
Inventory Turnover is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Cathay Chemical Works Inventory Turnover Calculation

Cathay Chemical Works's Inventory Turnover for the fiscal year that ended in Dec. 2025 is calculated as

Inventory Turnover (A: Dec. 2025 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2025 ) / ((Total Inventories (A: Dec. 2024 ) + Total Inventories (A: Dec. 2025 )) / count )
=439.194 / ((206.793 + 195.523) / 2 )
=439.194 / 201.158
=2.18

Cathay Chemical Works's Inventory Turnover for the quarter that ended in Dec. 2025 is calculated as

Inventory Turnover (Q: Dec. 2025 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Dec. 2025 ) / ((Total Inventories (Q: Sep. 2025 ) + Total Inventories (Q: Dec. 2025 )) / count )
=127.44 / ((221.452 + 195.523) / 2 )
=127.44 / 208.4875
=0.61

* 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.

Frequently Asked Questions Learn more about Inventory Turnover →
What does a Inventory Turnover of 0.61 mean?
Cathay Chemical Works (TPE:1713) has a Inventory Turnover of 0.61 as of Dec. 2025. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Cathay Chemical Works and its competitors.
Is Cathay Chemical Works' Inventory Turnover too high?
Cathay Chemical Works' current Inventory Turnover is 0.61. Overall, Cathay Chemical Works has a GF Score™ of 70/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cathay Chemical Works' Inventory Turnover compare to LIN and SHW?
Cathay Chemical Works' Inventory Turnover of 0.61 can be compared against companies in the Chemicals industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Inventory Turnover for a Chemicals company?
A good Inventory Turnover depends on the Chemicals industry context. However, Inventory Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Inventory Turnover mean?
A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Cathay Chemical Works and its competitors. Cathay Chemical Works's current Inventory Turnover is 0.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cathay Chemical Works stock overvalued right now?
Based on GuruFocus' analysis, Cathay Chemical Works (TPE:1713) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$42.72, compared to a current price of NT$47.40 — trading 11% above its estimated fair value. The current Inventory Turnover is 0.61. Cathay Chemical Works' overall GF Score™ is 70/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Inventory Turnover calculated?
Inventory Turnover is calculated from a company's financial statements. For Cathay Chemical Works (TPE:1713), the current Inventory Turnover is 0.61 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Cathay Chemical Works (TPE:1713) Overvalued in 2026?

Based on GuruFocus' analysis, Cathay Chemical Works stock appears to be overvalued. The current stock price of NT$47.40 is trading 11% above its estimated GF Value™ of NT$42.72. GuruFocus considers Cathay Chemical Works to be Modestly Overvalued.

Key valuation signals for TPE:1713:

  • Inventory Turnover: 0.61
  • GF Value™: NT$42.72 vs. price of NT$47.40 (11% above fair value)
  • GF Score™: 70/100 with 6 warning signs

No single metric tells the full story. See the TPE:1713 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Cathay Chemical Works Business Description

Address Zhongxiao East Road, 12 Floor, No. 320, Section 4, Taipei, TWN
Cathay Chemical Works Inc Company's mainly business is the manufacture and sale of sodium hydrosulfite, zinc oxide, sodium formaldehyde sulfoxylate, zinc dust and so on. It is the sole operating department. The company has presence in Taiwan, Asia, America, Europe, New Zealand and Australia. The majority of revenue comes from Taiwan.
70GF Score

Get the complete analysis for TPE:1713

Inventory Turnover is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$47.40
Price
NT$42.72
GF Value