Esab India (BOM:500133) Inventory Turnover : 1.83 (As of Mar. 2024)

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What is Esab India 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. Esab India's Cost of Goods Sold for the three months ended in Mar. 2024 was ₹2,033 Mil. Esab India's Average Total Inventories for the quarter that ended in Mar. 2024 was ₹1,113 Mil. Esab India's Inventory Turnover for the quarter that ended in Mar. 2024 was 1.83.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Esab India's Days Inventory for the three months ended in Mar. 2024 was 49.94.

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. Esab India's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.33.

Esab India Inventory Turnover Historical Data

The historical data trend for Esab India'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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Esab India Inventory Turnover Chart

Esab India Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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6.00

5.83

6.36

5.89

6.34

Esab India Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															1.48	1.46	1.54	1.50	1.83

Esab India Inventory Turnover Calculation

Esab India's Inventory Turnover for the fiscal year that ended in Mar. 2024 is calculated as

	Inventory Turnover (A: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2024 )	/ (	(Total Inventories (A: Mar. 2023 )	+	Total Inventories (A: Mar. 2024 ))	/	count )
=	7440.1	/ (	(1234.3	+	1112.6)	/	2 )
=	7440.1	/	1173.45
=	6.34

Esab India'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 )
=	2033	/ (	(0	+	1112.6)	/	1 )
=	2033	/	1112.6
=	1.83

Esab India (BOM:500133) 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.

Esab India'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
	=	1112.6	/	2033	*	365 / 4
	=	49.94

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.

Esab India'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 )
	=	1112.6	/	3409.3
	=	0.33

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.

Esab India Inventory Turnover Related Terms

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Esab India (BOM:500133) Business Description

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ESABINDIA:India

Address

Plot No.13, 3rd Main Road, Industrial Estate, Ambattur, Chennai, TN, IND, 600 058

Website

http://www.esabindia.com

Esab India Ltd is engaged in the production of welding and cutting equipment and consumables. The company focuses on areas such as Manual welding and cutting equipment, Welding Consumables, Welding automation, Mechanized cutting systems and others. It operates in the segment of fabrication technology. This includes manufacturing and selling of welding, cutting and allied products and also provides engineering, support and consulting services. It serves industries like Automotive, General fabrication and civil construction, Pipelines, Pipe mills, Power generation, Process industry, Repair and maintenance, Shipbuilding and offshore and Transport and mobile machinery industries. The company's brand includes ESAB, Exaton, Gasarc, Murex, Victor, Thermal Dynamics, Tweco.

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