Hongli Group (Hongli Group) Inventory Turnover : 1.90 (As of Dec. 2023)

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What is Hongli Group 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. Hongli Group's Cost of Goods Sold for the six months ended in Dec. 2023 was $4.88 Mil. Hongli Group's Average Total Inventories for the quarter that ended in Dec. 2023 was $2.58 Mil. Hongli Group's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.90.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Hongli Group's Days Inventory for the six months ended in Dec. 2023 was 96.28.

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. Hongli Group's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.36.

Hongli Group Inventory Turnover Historical Data

The historical data trend for Hongli Group'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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Hongli Group Inventory Turnover Chart

Hongli Group Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

5.90

5.77

6.40

4.76

4.33

Hongli Group Semi-Annual Data
	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Inventory Turnover	Get a 7-Day Free Trial				2.88	2.44	2.34	2.17	1.90

Hongli Group Inventory Turnover Calculation

Hongli Group'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 )
=	10.752	/ (	(2.614	+	2.35)	/	2 )
=	10.752	/	2.482
=	4.33

Hongli Group'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 )
=	4.883	/ (	(2.802	+	2.35)	/	2 )
=	4.883	/	2.576
=	1.90

Hongli Group (NAS:HLP) 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.

Hongli Group'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
	=	2.576	/	4.883	*	365 / 2
	=	96.28

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.

Hongli Group'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 )
	=	2.576	/	7.083
	=	0.36

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.

Hongli Group Inventory Turnover Related Terms

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Hongli Group (Hongli Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Hongli Group Inc (NAS:HLP) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

Beisanli Street, Economic Development Zone, Changle County, Weifang, Shandong, CHN, 262400

Website

https://www.hlyxgg.com

Hongli Group Inc is a cold roll formed steel profile manufacturer in China. It customizes and manufactures cold roll formed steel profiles for machinery and equipment in a variety of sectors, including but not limited to mining and excavation, construction, agriculture and transportation.

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