VOLAF (Volvo AB) Inventory Turnover: 1.16 (As of Mar. 2026)


VOLAF Volvo AB VOLAF
92 GF Score
Price $34.15
GF Value $28.61
Valuation Modestly Overvalued
! 6 Warning Signs
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What is Volvo AB Inventory Turnover?

Volvo AB VOLAF -1.64% 92 Inventory Turnover is 1.16 as of Mar. 2026. GuruFocus rates VOLAF with a GF Score™ of 92/100 and a GF Value™ of $28.61 (Modestly Overvalued). The stock has 6 warning signs investors should review.

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. Volvo AB's Cost of Goods Sold for the three months ended in Mar. 2026 was $8,805 Mil. Volvo AB's Average Total Inventories for the quarter that ended in Mar. 2026 was $7,609 Mil. Volvo AB's Inventory Turnover for the quarter that ended in Mar. 2026 was 1.16.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Volvo AB's Days Inventory for the three months ended in Mar. 2026 was 78.86.

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. Volvo AB's Inventory-to-Revenue for the quarter that ended in Mar. 2026 was 0.64.

Volvo AB  (OTCPK:VOLAF) 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.

Volvo AB's Days Inventory for the three months ended in Mar. 2026 is calculated as:

Days Inventory =Average Total Inventories (Q: Mar. 2026 )/Cost of Goods Sold (Q: Mar. 2026 )*Days in Period
=7609.4325/8805.328*365 / 4
=78.86

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.

Volvo AB's Inventory to Revenue for the quarter that ended in Mar. 2026 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=7609.4325 / 11888.228
=0.64

* 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.

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.

Volvo AB Inventory Turnover Related Terms

Volvo AB Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Volvo AB'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.

Volvo AB Inventory Turnover Chart

Volvo AB Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.88 4.87 5.31 4.76 5.48

Volvo AB Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Inventory Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.23 1.32 1.14 1.34 1.16
VOLAF
92GF Score
Volvo AB VOLAF
Inventory Turnover is just one metric. See GF Score™, valuation, warning signs, and more.
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Volvo AB Inventory Turnover Calculation

Volvo AB's Inventory Turnover for the fiscal year that ended in Dec. 2025 is calculated as

Inventory Turnover (A: Dec. 2025 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2025 ) / ((Total Inventories (A: Dec. 2024 ) + Total Inventories (A: Dec. 2025 )) / count )
=38985.743 / ((7133.273 + 7097.756) / 2 )
=38985.743 / 7115.5145
=5.48

Volvo AB's Inventory Turnover for the quarter that ended in Mar. 2026 is calculated as

Inventory Turnover (Q: Mar. 2026 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Mar. 2026 ) / ((Total Inventories (Q: Dec. 2025 ) + Total Inventories (Q: Mar. 2026 )) / count )
=8805.328 / ((7097.756 + 8121.109) / 2 )
=8805.328 / 7609.4325
=1.16

* 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.

Frequently Asked Questions Learn more about Inventory Turnover →
What does a Inventory Turnover of 1.16 mean?
Volvo AB (VOLAF) has a Inventory Turnover of 1.16 as of Mar. 2026. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Volvo AB and its competitors.
Is Volvo AB's Inventory Turnover too high?
Volvo AB's current Inventory Turnover is 1.16. Overall, Volvo AB has a GF Score™ of 92/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Volvo AB's Inventory Turnover compare to CAT and DE?
Volvo AB's Inventory Turnover of 1.16 can be compared against companies in the Farm & Heavy Construction Machinery industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Inventory Turnover for a Farm & Heavy Construction Machinery company?
A good Inventory Turnover depends on the Farm & Heavy Construction Machinery industry context. However, Inventory Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Inventory Turnover mean?
A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Volvo AB and its competitors. Volvo AB's current Inventory Turnover is 1.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Volvo AB stock overvalued right now?
Based on GuruFocus' analysis, Volvo AB (VOLAF) is currently considered Modestly Overvalued. The stock's GF Value™ is $28.61, compared to a current price of $34.15 — trading 19.4% above its estimated fair value. The current Inventory Turnover is 1.16. Volvo AB's overall GF Score™ is 92/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Inventory Turnover calculated?
Inventory Turnover is calculated from a company's financial statements. For Volvo AB (VOLAF), the current Inventory Turnover is 1.16 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Volvo AB (VOLAF) Overvalued in 2026?

Based on GuruFocus' analysis, Volvo AB stock appears to be overvalued. The current stock price of $34.15 is trading 19.4% above its estimated GF Value™ of $28.61. GuruFocus considers Volvo AB to be Modestly Overvalued.

Key valuation signals for VOLAF:

  • Inventory Turnover: 1.16
  • GF Value™: $28.61 vs. price of $34.15 (19.4% above fair value)
  • GF Score™: 92/100 with 6 warning signs

No single metric tells the full story. See the VOLAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Volvo AB Business Description

Address Gropegardsgatan 2, Gothenburg, SWE, SE-417 15
The Volvo Group is one of the largest global truck, bus, construction equipment, and engine and power system original equipment manufacturers, operating with the Volvo, Renault Truck, Mack Trucks, Volvo Penta, and Nova Bus brands. Among the four largest Western global brands—Volvo, Daimler, Paccar, and Traton—Volvo ranks third in terms of annual deliveries. Its truck, construction equipment, bus, and engines and power system segments contributed 71%, 18%, 5%, and 5%, respectively, to industrial operations' revenue in 2025. An in-house financial services division supports these businesses. In its key regions of Europe, North America, Brazil, and Australia, the truck business holds large market shares of 29%, 17%, 24%, and 22%, respectively.
92GF Score

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Inventory Turnover is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$34.15
Price
$28.61
GF Value