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Hitek Global (Hitek Global) Inventory Turnover : 3.53 (As of Dec. 2023)


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What is Hitek Global 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. Hitek Global's Cost of Goods Sold for the six months ended in Dec. 2023 was $1.19 Mil. Hitek Global's Average Total Inventories for the quarter that ended in Dec. 2023 was $0.34 Mil. Hitek Global's Inventory Turnover for the quarter that ended in Dec. 2023 was 3.53.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Hitek Global's Days Inventory for the six months ended in Dec. 2023 was 51.74.

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. Hitek Global's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.21.

Hitek Global Inventory Turnover Historical Data

The historical data trend for Hitek Global'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.

* Premium members only.

Hitek Global Inventory Turnover Chart

Hitek Global Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Inventory Turnover
Get a 7-Day Free Trial 10.88 8.32 9.76 6.89 8.12

Hitek Global Semi-Annual Data
Dec17 Jun18 Dec18 Jun19 Dec19 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Inventory Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.64 2.00 3.59 3.26 3.53

Hitek Global Inventory Turnover Calculation

Hitek Global'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 )
=2.643 / ((0.431 + 0.22) / 2 )
=2.643 / 0.3255
=8.12

Hitek Global's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

Inventory Turnover (Q: Dec. 2023 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Dec. 2023 ) / ((Total Inventories (Q: Jun. 2023 ) + Total Inventories (Q: Dec. 2023 )) / count )
=1.194 / ((0.457 + 0.22) / 2 )
=1.194 / 0.3385
=3.53

* 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.

Hitek Global  (NAS:HKIT) 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.

Hitek Global's Days Inventory for the six months ended in Dec. 2023 is calculated as:

Days Inventory =Average Total Inventories (Q: Dec. 2023 )/Cost of Goods Sold (Q: Dec. 2023 )*Days in Period
=0.3385/1.194*365 / 2
=51.74

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.

Hitek Global's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=0.3385 / 1.616
=0.21

* 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.

Hitek Global Inventory Turnover Related Terms

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Hitek Global (Hitek Global) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » Hitek Global Inc (NAS:HKIT) » Definitions » Inventory Turnover
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Traded in Other Exchanges
4JX:Germany
Address
No. 30 Guanri Road, Siming District, Unit 304, Fujian Province, Phase II, Software Park, Xiamen, CHN
Website
http://www.xmhitek.com
Hitek Global Inc is a provider of information technology consulting and solutions services. The company has two lines of businesses such as services to small and medium businesses, which consist of Anti-Counterfeiting Tax Control System tax devices, including Golden Tax Disk and printers, ACTCS services, and IT services; and services to large businesses, which include hardware sales and software sales. It generates revenues from hardware sales, software sales, IT services, and tax devices and services.