LG Electronics (XKRX:066570) Inventory Turnover : 1.64 (As of Mar. 2024)

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What is LG Electronics 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. LG Electronics's Cost of Goods Sold for the three months ended in Mar. 2024 was ₩15,710,998 Mil. LG Electronics's Average Total Inventories for the quarter that ended in Mar. 2024 was ₩9,581,171 Mil. LG Electronics's Inventory Turnover for the quarter that ended in Mar. 2024 was 1.64.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. LG Electronics's Days Inventory for the three months ended in Mar. 2024 was 55.65.

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. LG Electronics's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.45.

LG Electronics Inventory Turnover Historical Data

The historical data trend for LG Electronics'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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LG Electronics Inventory Turnover Chart

LG Electronics Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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7.90

6.39

6.40

6.61

6.96

LG Electronics 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															1.59	1.64	1.69	1.93	1.64

LG Electronics Inventory Turnover Calculation

LG Electronics'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 )
=	64425110	/ (	(9388808	+	9125404)	/	2 )
=	64425110	/	9257106
=	6.96

LG Electronics'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 )
=	15710998	/ (	(9125404	+	10036937)	/	2 )
=	15710998	/	9581170.5
=	1.64

LG Electronics (XKRX:066570) 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.

LG Electronics'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
	=	9581170.5	/	15710998	*	365 / 4
	=	55.65

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.

LG Electronics'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 )
	=	9581170.5	/	21095949
	=	0.45

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.

LG Electronics Inventory Turnover Related Terms

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LG Electronics (XKRX:066570) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » LG Electronics Inc (XKRX:066570) » Definitions » Inventory Turnover

Traded in Other Exchanges

066575:Korea LGLD:UK LGLG:Germany

Address

Twin Tower 128, Yeoui-daero, Yeongdeungpo-gu, Seoul, KOR, 07336

Website

https://www.lge.co.kr

LG Electronics Inc is a South Korea-based company that produces a broad range of electronic products. Its businesses are the home entertainment segment, which produces and sells TVs and digital media products; the mobile communications segment, which produces and sells mobile communications equipment; the home appliance and air solutions segment, which produces and sells washing machines, refrigerators, and other products; the vehicle components segment, which designs and produces vehicle parts; the business solutions segment, which manufactures and sells PCs, solar panels, and other products; and Innotek, which sells substrates, sensors, and other items. The company generates the majority of total revenue from the home entertainment and home appliance and air solutions segments.

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