Response Plus Holding (ADX:RPM) Inventory Turnover : 2.98 (As of Jun. 2024)

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What is Response Plus Holding 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. Response Plus Holding's Cost of Goods Sold for the six months ended in Jun. 2024 was د.إ29.9 Mil. Response Plus Holding's Average Total Inventories for the quarter that ended in Jun. 2024 was د.إ10.0 Mil. Response Plus Holding's Inventory Turnover for the quarter that ended in Jun. 2024 was 2.98.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Response Plus Holding's Days Inventory for the six months ended in Jun. 2024 was 61.16.

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. Response Plus Holding's Inventory-to-Revenue for the quarter that ended in Jun. 2024 was 0.05.

Response Plus Holding Inventory Turnover Historical Data

The historical data trend for Response Plus Holding'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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Response Plus Holding Inventory Turnover Chart

Response Plus Holding Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

4.20

14.21

6.28

6.11

Response Plus Holding Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Inventory Turnover	Get a 7-Day Free Trial			4.29	3.05	2.91	3.51	2.98

Response Plus Holding Inventory Turnover Calculation

Response Plus Holding'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 )
=	50.678	/ (	(6.755	+	9.839)	/	2 )
=	50.678	/	8.297
=	6.11

Response Plus Holding's Inventory Turnover for the quarter that ended in Jun. 2024 is calculated as

	Inventory Turnover (Q: Jun. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jun. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Jun. 2024 ))	/	count )
=	29.888	/ (	(9.839	+	10.192)	/	2 )
=	29.888	/	10.0155
=	2.98

Response Plus Holding (ADX:RPM) 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.

Response Plus Holding's Days Inventory for the six months ended in Jun. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2024 )	/	Cost of Goods Sold (Q: Jun. 2024 )	*	Days in Period
	=	10.0155	/	29.888	*	365 / 2
	=	61.16

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.

Response Plus Holding's Inventory to Revenue for the quarter that ended in Jun. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2024 )	/	Revenue (Q: Jun. 2024 )
	=	10.0155	/	209.224
	=	0.05

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.

Response Plus Holding Inventory Turnover Related Terms

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Response Plus Holding Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Response Plus Holding (ADX:RPM) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

Burjeel Medical City, MBZ City, P.O. Box 130336, Zone D, 3rd Floor, Abu Dhabi, ARE

Website

https://rpm.ae

Response Plus Holding is engaged in the supply of manpower and medical equipment and the management of hospitals, clinics, and medical centers. The company's business activities are; healthcare services, investment in the healthcare-related business, investing in real estate and movables necessary for carrying out its activities, and management of affiliated companies. Geographically, it operates in the following markets; United Arab Emirates, Kingdom of Saudi Arabia, and Sultanate of Oman. Out of which a majority of its revenue comes from the United Arab Emirates market.