Nippon Paper Industries Co (TSE:3863) Inventory Turnover : 1.02 (As of Dec. 2023)

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What is Nippon Paper Industries 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. Nippon Paper Industries Co's Cost of Goods Sold for the three months ended in Dec. 2023 was 円245,282 Mil. Nippon Paper Industries Co's Average Total Inventories for the quarter that ended in Dec. 2023 was 円241,267 Mil. Nippon Paper Industries Co's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.02.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Nippon Paper Industries Co's Days Inventory for the three months ended in Dec. 2023 was 89.76.

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. Nippon Paper Industries Co's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.83.

Nippon Paper Industries Co Inventory Turnover Historical Data

The historical data trend for Nippon Paper Industries 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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Nippon Paper Industries Co Inventory Turnover Chart

Nippon Paper Industries Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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4.76

4.65

4.79

4.70

4.26

Nippon Paper Industries 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															1.10	1.00	1.02	1.02	1.05

Nippon Paper Industries Co Inventory Turnover Calculation

Nippon Paper Industries Co's Inventory Turnover for the fiscal year that ended in Mar. 2024 is calculated as

	Inventory Turnover (A: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2024 )	/ (	(Total Inventories (A: Mar. 2023 )	+	Total Inventories (A: Mar. 2024 ))	/	count )
=	985918	/ (	(238513	+	224810)	/	2 )
=	985918	/	231661.5
=	4.26

Nippon Paper Industries 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 )
=	245282	/ (	(242970	+	239563)	/	2 )
=	245282	/	241266.5
=	1.02

Nippon Paper Industries Co (TSE:3863) 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.

Nippon Paper Industries 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
	=	241266.5	/	245282	*	365 / 4
	=	89.76

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.

Nippon Paper Industries 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 )
	=	241266.5	/	290574
	=	0.83

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.

Nippon Paper Industries Co Inventory Turnover Related Terms

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Nippon Paper Industries Co (TSE:3863) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Nippon Paper Industries Co Ltd (TSE:3863) » Definitions » Inventory Turnover

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NIJPF:USA

Address

4-6, Kanda-Surugadai, Chiyoda-ku, Tokyo, JPN, 101-0062

Website

http://www.nipponpapergroup.com

Nippon Paper Industries Co Ltd produces and sells a variety of paper products. The company's paper products include newsprint, printing, sanitary, and packaging paper, as well as container board and boxes. The firm also sells construction materials, and generates electric power. Nippon Paper organizes itself into four segments based on product type: pulp and paper; paper related; wood products and construction related; and other. The pulp and paper segment generates the majority of revenue. The majority of sales are made in Japan.

Nippon Paper Industries Co (TSE:3863) Headlines

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