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. Encore Wire's Cost of Goods Sold for the
three
months ended in Dec. 2023 was $497 Mil. Encore Wire's Average Total Inventories for the quarter that ended in Dec. 2023 was $161 Mil.
Encore Wire's Inventory Turnover for the quarter that ended in Dec. 2023 was 3.08.
Days Inventory indicates the number of days of goods in sales that a company has in the inventory.
Encore Wire's Days Inventory for the
three
months ended in Dec. 2023 was 29.60.
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.
Encore Wire's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.25.
Encore Wire Inventory Turnover Historical Data
The historical data trend for Encore Wire'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.
* 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.
Encore Wire (NAS:WIRE) 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.
Encore Wire's Days Inventory for the
three
months ended in Dec. 2023 is calculated as:
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.
Encore Wire's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as
* 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.
Encore Wire Inventory Turnover Related Terms
Thank you for viewing the detailed overview of Encore Wire's Inventory Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.
Encore Wire Corp is engaged in manufacturing electrical building wire and cable. It supplies building wire for interior electrical wiring in commercial and industrial buildings, homes, apartments, and manufactured housing. The company's principal customers are wholesale electrical distributors, who sell building wire and a variety of other products to electrical contractors. Encore offers an electrical building wire product line that consists primarily of NM-B cable, UF-B cable, THHN/THWN-2, XHHW-2, RHH/RHW-2, and other types of wire products, including tray cable, metal-clad, and armored cable.
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