Diageo (Diageo) Inventory Turnover : 0.43 (As of Dec. 2023)

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What is Diageo 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. Diageo's Cost of Goods Sold for the six months ended in Dec. 2023 was $4,241 Mil. Diageo's Average Total Inventories for the quarter that ended in Dec. 2023 was $9,751 Mil. Diageo's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.43.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Diageo's Days Inventory for the six months ended in Dec. 2023 was 419.63.

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. Diageo's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.89.

Diageo Inventory Turnover Historical Data

The historical data trend for Diageo'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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Diageo Inventory Turnover Chart

Diageo Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Inventory Turnover

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0.91

0.82

0.90

0.85

0.95

Diageo Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															0.48	0.38	0.48	0.47	0.43

Diageo Inventory Turnover Calculation

Diageo's Inventory Turnover for the fiscal year that ended in Jun. 2023 is calculated as

	Inventory Turnover (A: Jun. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jun. 2023 )	/ (	(Total Inventories (A: Jun. 2022 )	+	Total Inventories (A: Jun. 2023 ))	/	count )
=	8701.739	/ (	(8604.211	+	9662.853)	/	2 )
=	8701.739	/	9133.532
=	0.95

Diageo'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: Jun. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	4241	/ (	(9662.853	+	9840)	/	2 )
=	4241	/	9751.4265
=	0.43

Diageo (NYSE:DEO) 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.

Diageo's Days Inventory for the six 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
	=	9751.4265	/	4241	*	365 / 2
	=	419.63

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.

Diageo'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 )
	=	9751.4265	/	10962
	=	0.89

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.

Diageo Inventory Turnover Related Terms

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Diageo (Diageo) Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Diageo PLC (NYSE:DEO) » Definitions » Inventory Turnover

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Address

16 Great Marlborough Street, London, GBR, W1F 7HS

Website

https://www.diageo.com

The product of a merger between Grand Metropolitan and Guinness in 1997, Diageo is one of the world's leading producers of branded premium spirits, approximately level with Kweichow Moutai in revenue terms. It also produces and markets beer and wine. Brands include Johnnie Walker blended scotch, Smirnoff vodka, Crown Royal Canadian whiskey, Captain Morgan rum, Casamigos tequila, Tanqueray gin, Baileys Irish Cream, and Guinness stout. Diageo also owns 34% of premium champagne and cognac maker Moet Hennessy, a subsidiary of French luxury-goods maker LVMH Moet Hennessy-Louis Vuitton, and a near-56% stake in India's United Spirits.