Adcock Ingram Holdings (JSE:AIP) Inventory Turnover : 1.29 (As of Dec. 2023)

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What is Adcock Ingram Holdings 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. Adcock Ingram Holdings's Cost of Goods Sold for the six months ended in Dec. 2023 was R3,131 Mil. Adcock Ingram Holdings's Average Total Inventories for the quarter that ended in Dec. 2023 was R2,427 Mil. Adcock Ingram Holdings's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.29.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Adcock Ingram Holdings's Days Inventory for the six months ended in Dec. 2023 was 141.48.

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. Adcock Ingram Holdings's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.51.

Adcock Ingram Holdings Inventory Turnover Historical Data

The historical data trend for Adcock Ingram Holdings'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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Adcock Ingram Holdings Inventory Turnover Chart

Adcock Ingram Holdings Annual Data

Trend

Sep13

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Inventory Turnover

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2.98

2.86

2.70

2.80

2.57

Adcock Ingram Holdings Semi-Annual Data
	Mar14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															1.48	1.37	1.33	1.20	1.29

Adcock Ingram Holdings Inventory Turnover Calculation

Adcock Ingram Holdings's Inventory Turnover for the fiscal year that ended in Jun. 2023 is calculated as

	Inventory Turnover (A: Jun. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jun. 2023 )	/ (	(Total Inventories (A: Jun. 2022 )	+	Total Inventories (A: Jun. 2023 ))	/	count )
=	5944.832	/ (	(2169.077	+	2449.611)	/	2 )
=	5944.832	/	2309.344
=	2.57

Adcock Ingram Holdings'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 )
=	3130.757	/ (	(2449.611	+	2404.537)	/	2 )
=	3130.757	/	2427.074
=	1.29

Adcock Ingram Holdings (JSE:AIP) 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.

Adcock Ingram Holdings'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
	=	2427.074	/	3130.757	*	365 / 2
	=	141.48

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.

Adcock Ingram Holdings'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 )
	=	2427.074	/	4740.424
	=	0.51

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.

Adcock Ingram Holdings Inventory Turnover Related Terms

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Adcock Ingram Holdings (JSE:AIP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Adcock Ingram Holdings Ltd (JSE:AIP) » Definitions » Inventory Turnover

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Address

1 New Road, (c/o New Road & 7th Street), Midrand, Johannesburg, GT, ZAF, 1682

Website

https://www.adcock.com

Adcock Ingram Holdings Ltd is a drug manufacturing company. The company manufactures, markets, and distributes a wide range of healthcare products. The company generates roughly two-thirds of its sales from the private sector, with the remaining from the public sector. Adcock operates in four broad areas: renal disease, medicine delivery, transfusion therapies, and blood and specialized pharmaceuticals. The company generates the vast majority of its revenue in southern Africa, followed by the rest of Africa and India.