Orica (ASX:ORI) Inventory Turnover : 1.92 (As of Mar. 2024)

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What is Orica 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. Orica's Cost of Goods Sold for the six months ended in Mar. 2024 was A$1,743 Mil. Orica's Average Total Inventories for the quarter that ended in Mar. 2024 was A$908 Mil. Orica's Inventory Turnover for the quarter that ended in Mar. 2024 was 1.92.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Orica's Days Inventory for the six months ended in Mar. 2024 was 95.15.

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. Orica's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.25.

Orica Inventory Turnover Historical Data

The historical data trend for Orica'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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Orica Inventory Turnover Chart

Orica Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Inventory Turnover

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4.52

4.31

3.93

5.18

4.86

Orica Semi-Annual Data
	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															2.23	2.73	2.32	2.13	1.92

Orica Inventory Turnover Calculation

Orica's Inventory Turnover for the fiscal year that ended in Sep. 2023 is calculated as

	Inventory Turnover (A: Sep. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Sep. 2023 )	/ (	(Total Inventories (A: Sep. 2022 )	+	Total Inventories (A: Sep. 2023 ))	/	count )
=	4226.5	/ (	(872.6	+	868.1)	/	2 )
=	4226.5	/	870.35
=	4.86

Orica'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: Sep. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	1742.5	/ (	(868.1	+	948.8)	/	2 )
=	1742.5	/	908.45
=	1.92

Orica (ASX:ORI) 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.

Orica's Days Inventory for the six 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
	=	908.45	/	1742.5	*	365 / 2
	=	95.15

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.

Orica'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 )
	=	908.45	/	3657.2
	=	0.25

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.

Orica Inventory Turnover Related Terms

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Orica (ASX:ORI) Business Description

Industry

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Traded in Other Exchanges

OCLDY:USA ICA:Germany

Address

1 Nicholson Street, Level 3, East Melbourne, Melbourne, VIC, AUS, 3002

Website

https://www.orica.com

Orica is a leading global manufacturer and supplier of chemicals and explosives, primarily to the mining industry. It has operations in 50 countries across six continents. Mining services is the lone growth engine now that the chemicals business has been sold. Orica has an approximate 28% share of the global commercial explosives market. It provided resins, steel bolts, and other products for underground mining and tunneling though this business is now sold. It also supplies chemicals such as sodium cyanide to the mining industry.