ARAYA INDUSTRIAL Co (TSE:7305) Inventory Turnover : 0.92 (As of Dec. 2023)

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What is ARAYA INDUSTRIAL 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. ARAYA INDUSTRIAL Co's Cost of Goods Sold for the three months ended in Dec. 2023 was 円9,524 Mil. ARAYA INDUSTRIAL Co's Average Total Inventories for the quarter that ended in Dec. 2023 was 円10,338 Mil. ARAYA INDUSTRIAL Co's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.92.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. ARAYA INDUSTRIAL Co's Days Inventory for the three months ended in Dec. 2023 was 99.04.

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. ARAYA INDUSTRIAL Co's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.89.

ARAYA INDUSTRIAL Co Inventory Turnover Historical Data

The historical data trend for ARAYA INDUSTRIAL 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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ARAYA INDUSTRIAL Co Inventory Turnover Chart

ARAYA INDUSTRIAL Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Inventory Turnover

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5.43

4.58

4.37

4.15

3.65

ARAYA INDUSTRIAL Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															0.85	0.84	0.88	0.84	0.92

ARAYA INDUSTRIAL Co Inventory Turnover Calculation

ARAYA INDUSTRIAL Co's Inventory Turnover for the fiscal year that ended in Mar. 2023 is calculated as

	Inventory Turnover (A: Mar. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2023 )	/ (	(Total Inventories (A: Mar. 2022 )	+	Total Inventories (A: Mar. 2023 ))	/	count )
=	35998	/ (	(9028	+	10718)	/	2 )
=	35998	/	9873
=	3.65

ARAYA INDUSTRIAL 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 )
=	9524	/ (	(10306	+	10369)	/	2 )
=	9524	/	10337.5
=	0.92

ARAYA INDUSTRIAL Co (TSE:7305) 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.

ARAYA INDUSTRIAL 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
	=	10337.5	/	9524	*	365 / 4
	=	99.04

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.

ARAYA INDUSTRIAL 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 )
	=	10337.5	/	11582
	=	0.89

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.

ARAYA INDUSTRIAL Co Inventory Turnover Related Terms

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ARAYA INDUSTRIAL Co (TSE:7305) Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » ARAYA INDUSTRIAL Co Ltd (TSE:7305) » Definitions » Inventory Turnover

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Address

12-12 Minamisenba, Chuo-ku, Osaka, JPN, 542-0081

Website

http://www.araya-kk.co.jp

ARAYA INDUSTRIAL CO., Ltd. is engaged in the manufacturing and selling of high-quality, high-performance iron, stainless steel pipe and others by metal processing technology Roll Forming. Its product offering includes steel pipe, welfare equipment, rim for the bicycle, pipe cutting machine, pipe/sheet metal processing machine and other special purpose machines. The company's products are used in a wide range of fields including automobiles, motorcycles, bicycles, buildings, furniture, industrial machinery, welfare equipment, and logistics equipment.

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