Tree Island Steel (TSX:TSL) Inventory Turnover : 1.13 (As of Dec. 2023)

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What is Tree Island Steel 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. Tree Island Steel's Cost of Goods Sold for the three months ended in Dec. 2023 was C$58.9 Mil. Tree Island Steel's Average Total Inventories for the quarter that ended in Dec. 2023 was C$52.0 Mil. Tree Island Steel's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.13.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Tree Island Steel's Days Inventory for the three months ended in Dec. 2023 was 80.62.

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. Tree Island Steel's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.84.

Tree Island Steel Inventory Turnover Historical Data

The historical data trend for Tree Island Steel'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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Tree Island Steel Inventory Turnover Chart

Tree Island Steel Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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2.67

3.73

3.75

4.36

4.09

Tree Island Steel 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															1.23	1.11	1.04	0.96	1.13

Tree Island Steel Inventory Turnover Calculation

Tree Island Steel'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 )
=	224.175	/ (	(57.531	+	52.071)	/	2 )
=	224.175	/	54.801
=	4.09

Tree Island Steel'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 )
=	58.852	/ (	(51.925	+	52.071)	/	2 )
=	58.852	/	51.998
=	1.13

Tree Island Steel (TSX:TSL) 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.

Tree Island Steel'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
	=	51.998	/	58.852	*	365 / 4
	=	80.62

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.

Tree Island Steel'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 )
	=	51.998	/	62.239
	=	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.

Tree Island Steel Inventory Turnover Related Terms

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Tree Island Steel (TSX:TSL) Business Description

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TWIRF:USA

Address

3933 Boundary Road, Richmond, BC, CAN, V6V 1T8

Website

https://www.treeisland.com

Tree Island Steel Ltd operates in the steel business. It is engaged in the manufacturing and sale of steel wire and related products for a range of applications. It offers products such as bulk nails, stucco reinforcing products, concrete reinforcing mesh, fencing, and other fabricated wire products. The firm groups its products into the following: Industrial, Commercial, Agricultural, Construction, and Residential Construction. Key revenue is derived from the Industrial segment. The products are offered under Tree Island, Halsteel, K-Lath, True spec, Toughstrand, and Stucco-rite brands. Geographically the firm has its business presence across the region of the United States, Canada, and other regions, of which the United States region accounts for the majority share of the revenue.