Hitachi Construction Machinery Co (TSE:6305) Inventory Turnover : 0.48 (As of Mar. 2024)

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What is Hitachi Construction Machinery 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. Hitachi Construction Machinery Co's Cost of Goods Sold for the three months ended in Mar. 2024 was 円269,605 Mil. Hitachi Construction Machinery Co's Average Total Inventories for the quarter that ended in Mar. 2024 was 円561,083 Mil. Hitachi Construction Machinery Co's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.48.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Hitachi Construction Machinery Co's Days Inventory for the three months ended in Mar. 2024 was 189.90.

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. Hitachi Construction Machinery Co's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 1.46.

Hitachi Construction Machinery Co Inventory Turnover Historical Data

The historical data trend for Hitachi Construction Machinery 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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Hitachi Construction Machinery Co Inventory Turnover Chart

Hitachi Construction Machinery Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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2.17

2.07

2.24

2.20

1.94

Hitachi Construction Machinery 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															0.58	0.45	0.45	0.42	0.48

Hitachi Construction Machinery Co Inventory Turnover Calculation

Hitachi Construction Machinery 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 )
=	970758	/ (	(450782	+	552319)	/	2 )
=	970758	/	501550.5
=	1.94

Hitachi Construction Machinery 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 )
=	269605	/ (	(569847	+	552319)	/	2 )
=	269605	/	561083
=	0.48

Hitachi Construction Machinery Co (TSE:6305) 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.

Hitachi Construction Machinery 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
	=	561083	/	269605	*	365 / 4
	=	189.90

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.

Hitachi Construction Machinery 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 )
	=	561083	/	385559
	=	1.46

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.

Hitachi Construction Machinery Co Inventory Turnover Related Terms

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Hitachi Construction Machinery Co (TSE:6305) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » Hitachi Construction Machinery Co Ltd (TSE:6305) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

HTCMY:USA HCM:Germany

Address

16-1, Higashiueno 2-chome, Taito-ku, Tokyo, JPN, 110-0015

Website

https://www.hitachicm.com

Hitachi Construction Machinery, or HCM, manufactures and sells construction and mining machinery, and provides related services such as parts supply, rentals, and others. HCM was established in 1970 as a subsidiary of Hitachi, but its origins date back to 1949 when it introduced Japan's first mechanical excavator. The company's main products include hydraulic excavators for mining/construction, rigid dump trucks, and wheel loaders. As of August 2022, Hitachi is no longer the parent company of HCM, after selling 26% of its stake to HCJI Holdings, a joint venture between Itochu and Japan Industrial Partners. Currently, Hitachi has a 25.4% stake in Hitachi Construction Machinery as an equity-method affiliate. HCM is based in Tokyo, Japan.

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