GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Wetouch Technology Inc (NAS:WETH) » Definitions » Inventory Turnover

Wetouch Technology (Wetouch Technology) Inventory Turnover : 10.58 (As of Dec. 2023)


View and export this data going back to 1994. Start your Free Trial

What is Wetouch Technology 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. Wetouch Technology's Cost of Goods Sold for the three months ended in Dec. 2023 was $2.25 Mil. Wetouch Technology's Average Total Inventories for the quarter that ended in Dec. 2023 was $0.21 Mil. Wetouch Technology's Inventory Turnover for the quarter that ended in Dec. 2023 was 10.58.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Wetouch Technology's Days Inventory for the three months ended in Dec. 2023 was 8.63.

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. Wetouch Technology's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.09.

Wetouch Technology Inventory Turnover Historical Data

The historical data trend for Wetouch Technology'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.

* Premium members only.

Wetouch Technology Inventory Turnover Chart

Wetouch Technology Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Inventory Turnover
99.34 51.93 69.21 71.58 69.81

Wetouch Technology Quarterly Data
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 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 7.07 24.85 38.13 33.94 10.58

Wetouch Technology Inventory Turnover Calculation

Wetouch Technology'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 )
=22.515 / ((0.423 + 0.222) / 2 )
=22.515 / 0.3225
=69.81

Wetouch Technology'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 )
=2.253 / ((0.204 + 0.222) / 2 )
=2.253 / 0.213
=10.58

* 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.

Wetouch Technology  (NAS:WETH) 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.

Wetouch Technology'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
=0.213/2.253*365 / 4
=8.63

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.

Wetouch Technology'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 )
=0.213 / 2.374
=0.09

* 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.

Wetouch Technology Inventory Turnover Related Terms

Thank you for viewing the detailed overview of Wetouch Technology's Inventory Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.

Wetouch Technology (Wetouch Technology) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Wetouch Technology Inc (NAS:WETH) » Definitions » Inventory Turnover
Comparable Companies
LRHC ABCP GYRO NYC MDJH BRST MGAG OMH MHPC ZDPY CSGP CBRE XMAD:CLNX XTER:VNA BEKE TSE:8830 ADX:QHOLDING OSTO:AKEL D HKSE:01972 MIL:INW
Traded in Other Exchanges
N/A
Address
No. 29, Third Main Avenue, Shigao Town, Renshou County, Meishan, Sichuan, CHN, 620500
Website
https://www.wetouchinc.com
Wetouch Technology Inc is a touch panel supplier focused on R & D, production and sales of touch screen products. It offers touchscreens for a variety of applications, including GPS/car entertainment panels for automotive industry, industrial human-machine interface ("HMI"), financial and banking terminals, point of sale, lottery and gaming machines, smart home, robots and charging stations. The Company sells touchscreen products both domestically in China and internationally, covering majority areas in China, Taiwan, South Korea, and Germany.