Magellan Aerospace (TSX:MAL) Inventory Turnover : 0.77 (As of Dec. 2023)

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What is Magellan Aerospace 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. Magellan Aerospace's Cost of Goods Sold for the three months ended in Dec. 2023 was C$199.8 Mil. Magellan Aerospace's Average Total Inventories for the quarter that ended in Dec. 2023 was C$258.4 Mil. Magellan Aerospace's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.77.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Magellan Aerospace's Days Inventory for the three months ended in Dec. 2023 was 118.02.

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. Magellan Aerospace's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 1.16.

Magellan Aerospace Inventory Turnover Historical Data

The historical data trend for Magellan Aerospace'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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Magellan Aerospace Inventory Turnover Chart

Magellan Aerospace Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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4.62

3.16

3.04

3.35

3.26

Magellan Aerospace 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															0.87	0.86	0.81	0.77	0.77

Magellan Aerospace Inventory Turnover Calculation

Magellan Aerospace's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	790.626	/ (	(226.359	+	258.448)	/	2 )
=	790.626	/	242.4035
=	3.26

Magellan Aerospace'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 )
=	199.805	/ (	(258.381	+	258.448)	/	2 )
=	199.805	/	258.4145
=	0.77

Magellan Aerospace (TSX:MAL) 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.

Magellan Aerospace'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
	=	258.4145	/	199.805	*	365 / 4
	=	118.02

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.

Magellan Aerospace'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 )
	=	258.4145	/	223.581
	=	1.16

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.

Magellan Aerospace Inventory Turnover Related Terms

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Magellan Aerospace (TSX:MAL) Business Description

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GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Magellan Aerospace Corp (TSX:MAL) » Definitions » Inventory Turnover

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MALJF:USA 4M7A:Germany

Address

3160 Derry Road East, Mississauga, ON, CAN, L4T 1A9

Website

https://www.magellan.aero

Magellan Aerospace Corp supplies components to the aerospace industry. It has two major product groups: aerostructures and aeroengines. Its engines and parts may be applied to new aircraft, or as replacement parts to existing platforms. The company also provides aftermarket support by conducting specific repairs and other maintenance services. It serves both commercial (approximately three-fourths of total sales) and defense markets. Additionally, parts and equipment may be provided for power generation projects, but sales do not constitute a material amount. The three geographic regions to which Magellan primarily sells are Canada, the United States, and Europe.

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