Friedman Industries (Friedman Industries) Inventory Turnover : 0.97 (As of Dec. 2023)

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What is Friedman Industries 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. Friedman Industries's Cost of Goods Sold for the three months ended in Dec. 2023 was $105.5 Mil. Friedman Industries's Average Total Inventories for the quarter that ended in Dec. 2023 was $109.2 Mil. Friedman Industries's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.97.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Friedman Industries's Days Inventory for the three months ended in Dec. 2023 was 94.42.

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. Friedman Industries's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.94.

Friedman Industries Inventory Turnover Historical Data

The historical data trend for Friedman Industries'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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Friedman Industries Inventory Turnover Chart

Friedman Industries Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Inventory Turnover

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3.69

3.29

2.86

4.70

6.54

Friedman Industries Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															1.13	1.20	1.29	1.21	0.97

Friedman Industries Inventory Turnover Calculation

Friedman Industries's Inventory Turnover for the fiscal year that ended in Mar. 2023 is calculated as

	Inventory Turnover (A: Mar. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2023 )	/ (	(Total Inventories (A: Mar. 2022 )	+	Total Inventories (A: Mar. 2023 ))	/	count )
=	504.457	/ (	(67.946	+	86.246)	/	2 )
=	504.457	/	77.096
=	6.54

Friedman Industries'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: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	105.531	/ (	(104.501	+	113.901)	/	2 )
=	105.531	/	109.201
=	0.97

Friedman Industries (AMEX:FRD) 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.

Friedman Industries's Days Inventory for the three 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
	=	109.201	/	105.531	*	365 / 4
	=	94.42

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.

Friedman Industries'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 )
	=	109.201	/	115.973
	=	0.94

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.

Friedman Industries Inventory Turnover Related Terms

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Friedman Industries (Friedman Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Friedman Industries Inc (AMEX:FRD) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

X36:Germany

Address

1121 Judson Road, Suite 124, Longview, TX, USA, 75601

Website

https://www.friedmanindustries.com

Friedman Industries Inc is engaged in the manufacturing and processing of steel products. The company's operating segments include Coil Products and Tubular Products. It generates maximum revenue from the Coil Products segment. The company's products and services include Temper Pass, Cut-To-Length, Whole Coils, Toll Processing, Electric Resistance Welded Pipe (ERW), New Mill Secondary, and Pipe Finishing Services.

Executives

Max Alan Reichenthal	director	865 LOCKWOOD DRIVE, HOUSTON TX 77020
Joel Spira	director	THREE GREENWAY PLAZA, SUITE 1750, HOUSTON TX 77046
Mike J Taylor	director	P.O. BOX 2192, LONGVIEW TX 75606
Sharon L Taylor	director	4200 B STONE RD, KILGORE TX 75662
Alex Larue	officer: VP - Secretary & Treasurer	7 PEBBLE CREEK DRIVE NORTH, LONGVIEW TX 75605
Durga D Agrawal	director	2921 UNIVERSITY BLVD, HOUSTON TX 77005
Sandra Kay Scott	director	11503 BISTRO LANE, HOUSTON TX 77082
Joe L Williams	director	P.O. BOX 1587, HOUSTON TX 77251
Tim Scott Stevenson	director	PO BOX 2192, LONGVIEW TX 75606
Robert Sparkman	officer: President & COO	P.O. BOX 2192, LONGVIEW TX 75605
Charles W Hall	director	1301 MCKINNEY STE 5100, HOUSTON TX 77010
Benny Harper	officer: Sr. VP-Finance	1301 MCKINNEY STE 5100, HOUSTON TX 77010
William E Crow	director, officer: President and CEO	P.O. BOX 1587, HOUSTON TX 77251
Hershel M Rich	director	P.O. BOX 1587, HOUSTON TX 77251
Harold Friedman	director, 10 percent owner, officer: Vice Chairman of the Board	4001 HOMESTEAD ROAF, HOUSTON TX 77028