Arabian Drilling Co (SAU:2381) Inventory Turnover : 2.37 (As of Mar. 2024)

View and export this data going back to 2022. Start your Free Trial

What is Arabian Drilling Co 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. Arabian Drilling Co's Cost of Goods Sold for the three months ended in Mar. 2024 was ﷼698 Mil. Arabian Drilling Co's Average Total Inventories for the quarter that ended in Mar. 2024 was ﷼295 Mil. Arabian Drilling Co's Inventory Turnover for the quarter that ended in Mar. 2024 was 2.37.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Arabian Drilling Co's Days Inventory for the three months ended in Mar. 2024 was 38.58.

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. Arabian Drilling Co's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.31.

Arabian Drilling Co Inventory Turnover Historical Data

The historical data trend for Arabian Drilling Co'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.

Arabian Drilling Co Inventory Turnover Chart

Arabian Drilling Co Annual Data

Trend

Dec21

Dec22

Dec23

Inventory Turnover

12.02

12.04

11.06

Arabian Drilling Co Quarterly Data
	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial						2.96	2.37	2.30	2.43	2.37

Arabian Drilling Co Inventory Turnover Calculation

Arabian Drilling Co'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 )
=	2500.62	/ (	(172.541	+	279.741)	/	2 )
=	2500.62	/	226.141
=	11.06

Arabian Drilling Co'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 )
=	697.935	/ (	(279.741	+	310.417)	/	2 )
=	697.935	/	295.079
=	2.37

Arabian Drilling Co (SAU:2381) 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.

Arabian Drilling Co'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
	=	295.079	/	697.935	*	365 / 4
	=	38.58

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.

Arabian Drilling Co'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 )
	=	295.079	/	966.665
	=	0.31

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.

Arabian Drilling Co Inventory Turnover Related Terms

Thank you for viewing the detailed overview of Arabian Drilling Co's Inventory Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.

Arabian Drilling Co (SAU:2381) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Arabian Drilling Co (SAU:2381) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

P.O.Box 4110, Al-Khobar, SAU, 31952

Website

https://www.arabdrill.com

Arabian Drilling Co is an onshore and offshore gas and oil rig drilling company in Saudi Arabia. It is principally engaged in the drilling of oil and natural gas wells, operations, maintenance and hauling of rigs and related activities. The operating segment of the company Provision of drilling and related services through land rigs and Provision of drilling and related services through off-shore rigs. Majority of revenue is generated from Provision of drilling and related services through land rigs.

Arabian Drilling Co (SAU:2381) Headlines

No Headlines