ZEK (Zekelman Industries) Inventory Turnover: 1.44 (As of Jun. 2018)


What is Zekelman Industries Inventory Turnover?

Zekelman Industries ZEK Inventory Turnover is 1.44 as of Jun. 2018.

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. Zekelman Industries's Cost of Goods Sold for the three months ended in Jun. 2018 was $571.36 Mil. Zekelman Industries's Average Total Inventories for the quarter that ended in Jun. 2018 was $395.82 Mil. Zekelman Industries's Inventory Turnover for the quarter that ended in Jun. 2018 was 1.44.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Zekelman Industries's Days Inventory for the three months ended in Jun. 2018 was 63.22.

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. Zekelman Industries's Inventory-to-Revenue for the quarter that ended in Jun. 2018 was 0.51.

Zekelman Industries  (NYSE:ZEK) 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.

Zekelman Industries's Days Inventory for the three months ended in Jun. 2018 is calculated as:

Days Inventory =Average Total Inventories (Q: Jun. 2018 )/Cost of Goods Sold (Q: Jun. 2018 )*Days in Period
=395.821/571.359*365 / 4
=63.22

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.

Zekelman Industries's Inventory to Revenue for the quarter that ended in Jun. 2018 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Jun. 2018 ) / Revenue (Q: Jun. 2018 )
=395.821 / 783.134
=0.51

* 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.

Zekelman Industries Inventory Turnover Related Terms

Zekelman Industries Inventory Turnover Historical Data

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The historical data trend for Zekelman Industries'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.

Zekelman Industries Inventory Turnover Chart

Zekelman Industries Annual Data
Trend Sep15 Sep16 Sep17
Inventory Turnover
0.00 5.93 6.08

Zekelman Industries Quarterly Data
Sep15 Sep16 Jun17 Sep17 Jun18
Inventory Turnover 0.00 0.00 2.21 1.46 1.44

Zekelman Industries Inventory Turnover Calculation

Zekelman Industries's Inventory Turnover for the fiscal year that ended in Sep. 2017 is calculated as

Inventory Turnover (A: Sep. 2017 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Sep. 2017 ) / ((Total Inventories (A: Sep. 2016 ) + Total Inventories (A: Sep. 2017 )) / count )
=1657.7 / ((202.343 + 342.6) / 2 )
=1657.7 / 272.4715
=6.08

Zekelman Industries's Inventory Turnover for the quarter that ended in Jun. 2018 is calculated as

Inventory Turnover (Q: Jun. 2018 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Jun. 2018 ) / ((Total Inventories (Q: Sep. 2017 ) + Total Inventories (Q: Jun. 2018 )) / count )
=571.359 / ((342.6 + 449.042) / 2 )
=571.359 / 395.821
=1.44

* 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 1.44 mean?
Zekelman Industries (ZEK) has a Inventory Turnover of 1.44 as of Jun. 2018. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Zekelman Industries and its competitors.
Is Zekelman Industries' Inventory Turnover too high?
Zekelman Industries' current Inventory Turnover is 1.44.
How does Zekelman Industries' Inventory Turnover compare to ?
Zekelman Industries' Inventory Turnover of 1.44 can be compared against companies in the Steel 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 Steel company?
A good Inventory Turnover depends on the Steel 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 Zekelman Industries and its competitors. Zekelman Industries's current Inventory Turnover is 1.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zekelman Industries stock overvalued right now?
Zekelman Industries (ZEK) has a current Inventory Turnover of 1.44. The current Inventory Turnover is 1.44. 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 Zekelman Industries (ZEK), the current Inventory Turnover is 1.44 as of Jun. 2018. 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.

Zekelman Industries Business Description

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Address 227 West Monroe Street, Suite 2600, Chicago, IL, USA, 60606