ZKH (ZKH Group) Inventory Turnover : 10.73 (As of Dec. 2024)

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What is ZKH Group 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. ZKH Group's Cost of Goods Sold for the three months ended in Dec. 2024 was $959 Mil. ZKH Group's Average Total Inventories for the quarter that ended in Dec. 2024 was $89 Mil. ZKH Group's Inventory Turnover for the quarter that ended in Dec. 2024 was 10.73.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. ZKH Group's Days Inventory for the three months ended in Dec. 2024 was 8.50.

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. ZKH Group's Inventory-to-Revenue for the quarter that ended in Dec. 2024 was 0.08.

ZKH Group Inventory Turnover Historical Data

The historical data trend for ZKH Group'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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ZKH Group Inventory Turnover Chart

ZKH Group Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Dec24

Inventory Turnover

8.67

9.39

10.84

11.09

ZKH Group Quarterly Data
	Dec21	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Inventory Turnover	Get a 7-Day Free Trial					3.00	2.25	2.75	2.88	10.73

ZKH Group Inventory Turnover Calculation

ZKH Group's Inventory Turnover for the fiscal year that ended in Dec. 2024 is calculated as

	Inventory Turnover (A: Dec. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2024 )	/ (	(Total Inventories (A: Dec. 2023 )	+	Total Inventories (A: Dec. 2024 ))	/	count )
=	995.9	/ (	(93.693	+	85.897)	/	2 )
=	995.9	/	89.795
=	11.09

ZKH Group's Inventory Turnover for the quarter that ended in Dec. 2024 is calculated as

	Inventory Turnover (Q: Dec. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2024 )	/ (	(Total Inventories (Q: Sep. 2024 )	+	Total Inventories (Q: Dec. 2024 ))	/	count )
=	958.864	/ (	(92.836	+	85.897)	/	2 )
=	958.864	/	89.3665
=	10.73

ZKH Group (NYSE:ZKH) 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.

ZKH Group's Days Inventory for the three months ended in Dec. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2024 )	/	Cost of Goods Sold (Q: Dec. 2024 )	*	Days in Period
	=	89.3665	/	958.864	*	365 / 4
	=	8.50

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.

ZKH Group's Inventory to Revenue for the quarter that ended in Dec. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2024 )	/	Revenue (Q: Dec. 2024 )
	=	89.3665	/	1158.724
	=	0.08

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.

ZKH Group Inventory Turnover Related Terms

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ZKH Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » ZKH Group Ltd (NYSE:ZKH) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 36 Shenbin Road, 7th Floor, Tower 4, Libao Plaza, Minhang District, Shanghai, CHN, 201106

Website

https://www.zkh.com

ZKH Group Ltd engages in providing MRO procurement service platform in China. It provides one-stop MRO procurement and management services for its customers, and offers digital and fulfillment solutions for participants along the industry value chain. It offers a broad range of MRO product offerings covering all MRO product lines on its platform, including spare parts, chemicals, manufacturing parts, general consumables, and office supplies. All of the Group's revenues are derived from the PRC.