Nippon Gear Co (TSE:6356) Inventory Turnover : 0.67 (As of Mar. 2024)

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What is Nippon Gear 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 Gear Co's Cost of Goods Sold for the three months ended in Mar. 2024 was 円1,475 Mil. Nippon Gear Co's Average Total Inventories for the quarter that ended in Mar. 2024 was 円2,201 Mil. Nippon Gear Co's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.67.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Nippon Gear Co's Days Inventory for the three months ended in Mar. 2024 was 136.17.

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 Gear Co's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.84.

Nippon Gear Co Inventory Turnover Historical Data

The historical data trend for Nippon Gear 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 Gear Co Inventory Turnover Chart

Nippon Gear Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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2.22

2.18

2.66

2.46

2.49

Nippon Gear 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															0.66	0.59	0.52	0.66	0.67

Nippon Gear Co Inventory Turnover Calculation

Nippon Gear 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 )
=	5167.663	/ (	(1937.008	+	2206.212)	/	2 )
=	5167.663	/	2071.61
=	2.49

Nippon Gear 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 )
=	1474.934	/ (	(2195.84	+	2206.212)	/	2 )
=	1474.934	/	2201.026
=	0.67

Nippon Gear Co (TSE:6356) 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 Gear 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
	=	2201.026	/	1474.934	*	365 / 4
	=	136.17

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 Gear 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 )
	=	2201.026	/	2621.963
	=	0.84

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 Gear Co Inventory Turnover Related Terms

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Nippon Gear Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Nippon Gear Co Ltd (TSE:6356) » Definitions » Inventory Turnover

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Address

7 Kirihara-Cho, Kanagawa-Ken, Fujisawa, JPN, 252-0811

Website

http://www.nippon-gear.jp

Nippon Gear Co Ltd is engaged in the design, production, and sale of valve actuators, high-speed gear drivers, mixers, screw jacks, monitoring equipment, data communication equipment, control equipment, and software. It offers valve actuators for a range of applications in petroleum, nuclear, generating plants, and water/sewer pipelines; jacks for use in lifting/lowering, inclines, pulling, opening/closing, adjustment, and holding; gear drives for power plant, chemical plant, wastewater treatment plant, and other applications; and gears for automotive, railroad, industrial machine, and other industries.

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