Taiwan Hon Chuan Enterprise Co (TPE:9939) Inventory Turnover : 1.70 (As of Dec. 2024)

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What is Taiwan Hon Chuan Enterprise 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. Taiwan Hon Chuan Enterprise Co's Cost of Goods Sold for the three months ended in Dec. 2024 was NT$5,260 Mil. Taiwan Hon Chuan Enterprise Co's Average Total Inventories for the quarter that ended in Dec. 2024 was NT$3,097 Mil. Taiwan Hon Chuan Enterprise Co's Inventory Turnover for the quarter that ended in Dec. 2024 was 1.70.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Taiwan Hon Chuan Enterprise Co's Days Inventory for the three months ended in Dec. 2024 was 53.72.

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. Taiwan Hon Chuan Enterprise Co's Inventory-to-Revenue for the quarter that ended in Dec. 2024 was 0.47.

Taiwan Hon Chuan Enterprise Co Inventory Turnover Historical Data

The historical data trend for Taiwan Hon Chuan Enterprise 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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Taiwan Hon Chuan Enterprise Co Inventory Turnover Chart

Taiwan Hon Chuan Enterprise Co Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Inventory Turnover

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6.38

6.23

6.14

6.91

7.35

Taiwan Hon Chuan Enterprise Co Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Inventory Turnover	Get a 7-Day Free Trial															1.78	1.82	2.00	2.15	1.70

Taiwan Hon Chuan Enterprise Co Inventory Turnover Calculation

Taiwan Hon Chuan Enterprise Co's Inventory Turnover for the fiscal year that ended in Dec. 2024 is calculated as

	Inventory Turnover (A: Dec. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2024 )	/ (	(Total Inventories (A: Dec. 2023 )	+	Total Inventories (A: Dec. 2024 ))	/	count )
=	22142.337	/ (	(2636.089	+	3389.756)	/	2 )
=	22142.337	/	3012.9225
=	7.35

Taiwan Hon Chuan Enterprise Co's Inventory Turnover for the quarter that ended in Dec. 2024 is calculated as

	Inventory Turnover (Q: Dec. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2024 )	/ (	(Total Inventories (Q: Sep. 2024 )	+	Total Inventories (Q: Dec. 2024 ))	/	count )
=	5260.205	/ (	(2803.775	+	3389.756)	/	2 )
=	5260.205	/	3096.7655
=	1.70

Taiwan Hon Chuan Enterprise Co (TPE:9939) 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.

Taiwan Hon Chuan Enterprise Co's Days Inventory for the three months ended in Dec. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2024 )	/	Cost of Goods Sold (Q: Dec. 2024 )	*	Days in Period
	=	3096.7655	/	5260.205	*	365 / 4
	=	53.72

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.

Taiwan Hon Chuan Enterprise Co's Inventory to Revenue for the quarter that ended in Dec. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2024 )	/	Revenue (Q: Dec. 2024 )
	=	3096.7655	/	6541.483
	=	0.47

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.

Taiwan Hon Chuan Enterprise Co Inventory Turnover Related Terms

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Taiwan Hon Chuan Enterprise Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Taiwan Hon Chuan Enterprise Co Ltd (TPE:9939) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

No.6, 2nd Road, Taichung Industrial Park, Xitun District, Taichung, TWN

Website

https://www.honchuan.com.tw

Taiwan Hon Chuan Enterprise Co Ltd manufactures and sells a variety of packaging products. The company's primary product categories include plastic and aluminum caps used for beverages and can liners, polyethylene terephthalate bottles used to produce water bottles, and labels for consumer products. The firm also sells tobacco and liquor packaging as well as cigarette filters and paper. In addition, Taiwan Hon Chuan sells packaging equipment used to produce caps, bottles, labels, and fill bottles.

Taiwan Hon Chuan Enterprise Co Headlines

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