African Agriculture Holdings (African Agriculture Holdings) Inventory Turnover : 1.22 (As of Mar. 2024)

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What is African Agriculture Holdings 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. African Agriculture Holdings's Cost of Goods Sold for the three months ended in Mar. 2024 was $0.32 Mil. African Agriculture Holdings's Average Total Inventories for the quarter that ended in Mar. 2024 was $0.26 Mil. African Agriculture Holdings's Inventory Turnover for the quarter that ended in Mar. 2024 was 1.22.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. African Agriculture Holdings's Days Inventory for the three months ended in Mar. 2024 was 74.70.

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. African Agriculture Holdings's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.75.

African Agriculture Holdings Inventory Turnover Historical Data

The historical data trend for African Agriculture Holdings'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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African Agriculture Holdings Inventory Turnover Chart

African Agriculture Holdings Annual Data

Trend

Dec21

Dec22

Dec23

Inventory Turnover

1.81

4.69

African Agriculture Holdings Quarterly Data
	Dec21	Mar22	Jun22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial				0.88	1.36	1.38	-	1.22

African Agriculture Holdings Inventory Turnover Calculation

African Agriculture Holdings'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 )
=	1.358	/ (	(0.315	+	0.264)	/	2 )
=	1.358	/	0.2895
=	4.69

African Agriculture Holdings's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	0.317	/ (	(0.264	+	0.255)	/	2 )
=	0.317	/	0.2595
=	1.22

African Agriculture Holdings (NAS:AAGR) 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.

African Agriculture Holdings's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	0.2595	/	0.317	*	365 / 4
	=	74.70

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.

African Agriculture Holdings's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	0.2595	/	0.345
	=	0.75

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.

African Agriculture Holdings Inventory Turnover Related Terms

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African Agriculture Holdings (African Agriculture Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » African Agriculture Holdings Inc (NAS:AAGR) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

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Address

445 Park Avenue, Ninth Floor, New York, NY, USA, 10022

Website

African Agriculture Holdings Inc is a holding company that operates principally through its wholly-owned subsidiary, which is developing the company's initial commercial farming business based in northern Senegal focusing on the production and sale of alfalfa for cattle feed and nutrition purposes. The company will sell alfalfa to owners and suppliers of cattle for feed and nutritional purposes, primarily in Senegal and the surrounding regions in Africa, the Economic Community of West African States (ECOWAS) region and the Middle East.