Ajanta Pharma (BOM:532331) Inventory Turnover : 0.32 (As of Mar. 2024)

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What is Ajanta Pharma 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. Ajanta Pharma's Cost of Goods Sold for the three months ended in Mar. 2024 was ₹2,644 Mil. Ajanta Pharma's Average Total Inventories for the quarter that ended in Mar. 2024 was ₹8,284 Mil. Ajanta Pharma's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.32.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Ajanta Pharma's Days Inventory for the three months ended in Mar. 2024 was 285.91.

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. Ajanta Pharma's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.79.

Ajanta Pharma Inventory Turnover Historical Data

The historical data trend for Ajanta Pharma'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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Ajanta Pharma Inventory Turnover Chart

Ajanta Pharma Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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1.48

1.08

1.14

1.31

1.30

Ajanta Pharma 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															0.30	0.31	0.33	0.37	0.32

Ajanta Pharma Inventory Turnover Calculation

Ajanta Pharma'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 )
=	10665.7	/ (	(8156.3	+	8283.6)	/	2 )
=	10665.7	/	8219.95
=	1.30

Ajanta Pharma'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 )
=	2643.8	/ (	(0	+	8283.6)	/	1 )
=	2643.8	/	8283.6
=	0.32

Ajanta Pharma (BOM:532331) 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.

Ajanta Pharma'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
	=	8283.6	/	2643.8	*	365 / 4
	=	285.91

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.

Ajanta Pharma'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 )
	=	8283.6	/	10540.8
	=	0.79

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.

Ajanta Pharma Inventory Turnover Related Terms

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Ajanta Pharma (BOM:532331) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Ajanta Pharma Ltd (BOM:532331) » Definitions » Inventory Turnover

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AJANTPHARM:India

Address

Ajanta House, 98 Government Industrial Area, Charkop, Kandivli (West), Mumbai, MH, IND, 400 067

Website

https://www.ajantapharma.com

Ajanta Pharma Ltd is a drug manufacturing company with a focus on specialty pharmaceutical products. The company maintains a global presence while generating the vast majority of its revenue in Africa and India. Ajanta's strategy aims to successfully select molecules and products for development while enhancing its research and development capabilities. The company works to develop formulations in different dosages such as tablets, cream, capsules, liquid, and lotion. The company's manufacturing plants are located in India.

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