Salt Trading (XNEP:STC) Inventory Turnover : 3.06 (As of Jul. 2023)

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What is Salt Trading 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. Salt Trading's Cost of Goods Sold for the six months ended in Jul. 2023 was NPR7,696 Mil. Salt Trading's Average Total Inventories for the quarter that ended in Jul. 2023 was NPR2,517 Mil. Salt Trading's Inventory Turnover for the quarter that ended in Jul. 2023 was 3.06.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Salt Trading's Days Inventory for the six months ended in Jul. 2023 was 59.68.

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. Salt Trading's Inventory-to-Revenue for the quarter that ended in Jul. 2023 was 0.29.

Salt Trading Inventory Turnover Historical Data

The historical data trend for Salt Trading'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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Salt Trading Inventory Turnover Chart

Salt Trading Annual Data

Trend

Jul19

Jul20

Jul21

Jul22

Jul23

Inventory Turnover

2.13

2.69

3.46

3.08

3.06

Salt Trading Semi-Annual Data
	Jul19	Jul20	Jul21	Jul22	Jul23
Inventory Turnover	2.13	2.69	3.46	3.08	3.06

Salt Trading Inventory Turnover Calculation

Salt Trading's Inventory Turnover for the fiscal year that ended in Jul. 2023 is calculated as

	Inventory Turnover (A: Jul. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jul. 2023 )	/ (	(Total Inventories (A: Jul. 2022 )	+	Total Inventories (A: Jul. 2023 ))	/	count )
=	7695.947	/ (	(1718.556	+	3315.069)	/	2 )
=	7695.947	/	2516.8125
=	3.06

Salt Trading's Inventory Turnover for the quarter that ended in Jul. 2023 is calculated as

	Inventory Turnover (Q: Jul. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jul. 2023 )	/ (	(Total Inventories (Q: Jul. 2022 )	+	Total Inventories (Q: Jul. 2023 ))	/	count )
=	7695.947	/ (	(1718.556	+	3315.069)	/	2 )
=	7695.947	/	2516.8125
=	3.06

Salt Trading (XNEP:STC) 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.

Salt Trading's Days Inventory for the six months ended in Jul. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jul. 2023 )	/	Cost of Goods Sold (Q: Jul. 2023 )	*	Days in Period
	=	2516.8125	/	7695.947	*	365 / 2
	=	59.68

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.

Salt Trading's Inventory to Revenue for the quarter that ended in Jul. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jul. 2023 )	/	Revenue (Q: Jul. 2023 )
	=	2516.8125	/	8774.359
	=	0.29

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.

Salt Trading Inventory Turnover Related Terms

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Salt Trading Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Salt Trading Corp (XNEP:STC) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

Kalimati, P.O.Box: 483, Kathmandu, NPL

Website

http://www.stcnepal.com

Salt Trading Corp is engaged in the trading and distribution of salt and daily consumer goods in Nepal. The main commodities in which the company deals are food products and agricultural products, construction materials, Fuel and Lubricants, and other materials. The company earns maximum revenue from Food and agricultural items. It has business segments namely Fertilizer Sales, Salt Sales, Sugar sales, and others.