Magna International (TSX:MG) Inventory Turnover : 1.94 (As of Sep. 2024)

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What is Magna International 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. Magna International's Cost of Goods Sold for the three months ended in Sep. 2024 was C$11,958 Mil. Magna International's Average Total Inventories for the quarter that ended in Sep. 2024 was C$6,170 Mil. Magna International's Inventory Turnover for the quarter that ended in Sep. 2024 was 1.94.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Magna International's Days Inventory for the three months ended in Sep. 2024 was 47.08.

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. Magna International's Inventory-to-Revenue for the quarter that ended in Sep. 2024 was 0.44.

Magna International Inventory Turnover Historical Data

The historical data trend for Magna International'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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Magna International Inventory Turnover Chart

Magna International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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10.04

8.25

8.39

8.38

8.41

Magna International Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Inventory Turnover	Get a 7-Day Free Trial															1.99	1.91	2.12	2.13	1.94

Magna International Inventory Turnover Calculation

Magna International'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 )
=	49887.396	/ (	(5678.53	+	6179.41)	/	2 )
=	49887.396	/	5928.97
=	8.41

Magna International's Inventory Turnover for the quarter that ended in Sep. 2024 is calculated as

	Inventory Turnover (Q: Sep. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2024 )	/ (	(Total Inventories (Q: Jun. 2024 )	+	Total Inventories (Q: Sep. 2024 ))	/	count )
=	11958.409	/ (	(6120.653	+	6220.323)	/	2 )
=	11958.409	/	6170.488
=	1.94

Magna International (TSX:MG) 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.

Magna International's Days Inventory for the three months ended in Sep. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2024 )	/	Cost of Goods Sold (Q: Sep. 2024 )	*	Days in Period
	=	6170.488	/	11958.409	*	365 / 4
	=	47.08

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.

Magna International's Inventory to Revenue for the quarter that ended in Sep. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2024 )	/	Revenue (Q: Sep. 2024 )
	=	6170.488	/	13925.288
	=	0.44

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.

Magna International Inventory Turnover Related Terms

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Magna International Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Magna International Inc (TSX:MG) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

MGA:USA MGA N:Mexico MGA:Germany MGA:Germany

Address

337 Magna Drive, Aurora, ON, CAN, L4G 7K1

Website

https://www.magna.com

Magna International prides itself on a highly entrepreneurial culture and a corporate constitution that outlines distribution of profits to various stakeholders. This automotive supplier's product groups include exteriors, interiors, seating, roof systems, body and chassis, powertrain, vision and electronic systems, closure systems, electric vehicle systems, tooling and engineering, and contract vehicle assembly. In 2023, 48% of Magna's $42.8 billion of revenue came from North America while Europe accounted for approximately 38% and Asia the remainder. The firm's top six customers constituted 76% of revenue with the top three being GM, Mercedes, and BMW. GM was the largest contributor at 14%. The company was founded in 1957, has over 179,000 employees, and is based in Aurora, Ontario.

Executives

Patrick William David Mccann	Senior Officer
Seetarama Swamy Kotagiri	Director, Senior Officer
Bruce Cluney	Senior Officer
Uwe Paul-ernst Geissinger	Senior Officer
Peter Guy Bowie	Director
Vincent Joseph Galifi	Senior Officer
Magna International Inc.	Issuer
Aaron David Mccarthy	Senior Officer
Boris Shulkin	Senior Officer
Eric Jon Wilds Wilds	Senior Officer
Anton Mayer	Senior Officer
Mary Lou Maher	Director
Matteo Del Sorbo	Senior Officer
Tommy Joseph Skudutis	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6), Senior Officer
Guenther Friedrich Apfalter	Senior Officer