LI (Li Auto) Inventory Turnover : 4.13 (As of Sep. 2024)

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What is Li Auto 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. Li Auto's Cost of Goods Sold for the three months ended in Sep. 2024 was $4,755 Mil. Li Auto's Average Total Inventories for the quarter that ended in Sep. 2024 was $1,151 Mil. Li Auto's Inventory Turnover for the quarter that ended in Sep. 2024 was 4.13.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Li Auto's Days Inventory for the three months ended in Sep. 2024 was 22.08.

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. Li Auto's Inventory-to-Revenue for the quarter that ended in Sep. 2024 was 0.19.

Li Auto Inventory Turnover Historical Data

The historical data trend for Li Auto'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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Li Auto Inventory Turnover Chart

Li Auto Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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1.10

10.33

16.11

8.51

13.92

Li Auto Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Inventory Turnover	Get a 7-Day Free Trial															4.58	5.00	2.13	2.48	4.13

Li Auto Inventory Turnover Calculation

Li Auto'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 )
=	13494.661	/ (	(976.045	+	962.435)	/	2 )
=	13494.661	/	969.24
=	13.92

Li Auto's Inventory Turnover for the quarter that ended in Sep. 2024 is calculated as

	Inventory Turnover (Q: Sep. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2024 )	/ (	(Total Inventories (Q: Jun. 2024 )	+	Total Inventories (Q: Sep. 2024 ))	/	count )
=	4755.448	/ (	(1145.124	+	1156.331)	/	2 )
=	4755.448	/	1150.7275
=	4.13

Li Auto (NAS:LI) 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.

Li Auto's Days Inventory for the three months ended in Sep. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2024 )	/	Cost of Goods Sold (Q: Sep. 2024 )	*	Days in Period
	=	1150.7275	/	4755.448	*	365 / 4
	=	22.08

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.

Li Auto's Inventory to Revenue for the quarter that ended in Sep. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2024 )	/	Revenue (Q: Sep. 2024 )
	=	1150.7275	/	6059.104
	=	0.19

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.

Li Auto Inventory Turnover Related Terms

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Li Auto Business Description

Industry

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Traded in Other Exchanges

LIA:Mexico 02015:Hong Kong L87:Germany

Address

11 Wenliang Street, Shunyi District, Beijing, CHN, 101399

Website

https://www.lixiang.com

Li Auto is a leading Chinese NEV manufacturer that designs, develops, manufactures, and sells premium smart NEVs. The company started volume production of its first model Li One in November 2019. The model is a six-seater, large, premium plug-in electric SUV equipped with a range extension system and advanced smart vehicle solutions. It sold over 376,000 NEVs in 2023, accounting for about 4% of China's passenger new energy vehicle market. Beyond Li One, the company expands its product line, including both BEVs and PHEVs, to target a broader consumer base.