Watts Co (TSE:2735) Inventory Turnover : 0.90 (As of Feb. 2024)

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What is Watts 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. Watts Co's Cost of Goods Sold for the three months ended in Feb. 2024 was 円9,475 Mil. Watts Co's Average Total Inventories for the quarter that ended in Feb. 2024 was 円10,581 Mil. Watts Co's Inventory Turnover for the quarter that ended in Feb. 2024 was 0.90.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Watts Co's Days Inventory for the three months ended in Feb. 2024 was 101.91.

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. Watts Co's Inventory-to-Revenue for the quarter that ended in Feb. 2024 was 0.69.

Watts Co Inventory Turnover Historical Data

The historical data trend for Watts 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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Watts Co Inventory Turnover Chart

Watts Co Annual Data

Trend

Aug14

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

Inventory Turnover

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4.61

4.58

4.26

4.45

3.99

Watts Co Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Inventory Turnover	Get a 7-Day Free Trial															1.01	1.00	0.95	0.90	0.90

Watts Co Inventory Turnover Calculation

Watts Co's Inventory Turnover for the fiscal year that ended in Aug. 2023 is calculated as

	Inventory Turnover (A: Aug. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Aug. 2023 )	/ (	(Total Inventories (A: Aug. 2022 )	+	Total Inventories (A: Aug. 2023 ))	/	count )
=	36854.44	/ (	(8759.929	+	9736.647)	/	2 )
=	36854.44	/	9248.288
=	3.99

Watts Co's Inventory Turnover for the quarter that ended in Feb. 2024 is calculated as

	Inventory Turnover (Q: Feb. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Feb. 2024 )	/ (	(Total Inventories (Q: Nov. 2023 )	+	Total Inventories (Q: Feb. 2024 ))	/	count )
=	9474.725	/ (	(10674.215	+	10488.044)	/	2 )
=	9474.725	/	10581.1295
=	0.90

Watts Co (TSE:2735) 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.

Watts Co's Days Inventory for the three months ended in Feb. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Feb. 2024 )	/	Cost of Goods Sold (Q: Feb. 2024 )	*	Days in Period
	=	10581.1295	/	9474.725	*	365 / 4
	=	101.91

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.

Watts Co's Inventory to Revenue for the quarter that ended in Feb. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Feb. 2024 )	/	Revenue (Q: Feb. 2024 )
	=	10581.1295	/	15442.146
	=	0.69

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.

Watts Co Inventory Turnover Related Terms

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Watts Co (TSE:2735) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Watts Co Ltd (TSE:2735) » Definitions » Inventory Turnover

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Traded in Other Exchanges

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Address

Shiromi 1-4-70, Chuo-ku, Sumitomo Life Insurance OBP Plaza Building, 5th Floor, Osaka, JPN, 540-0001

Website

http://www.watts-jp.com

Watts Co., Ltd. is engaged in the wholesale of daily necessities, grocery and food products, and other goods. The company's product profile includes Sanitary goods, Cleaning sheet, Water supply equipment, Lunch supplies, and other related products.

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