Finning International (Finning International) Inventory Turnover : 0.71 (As of Dec. 2023)

View and export this data going back to 2009. Start your Free Trial

What is Finning International 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. Finning International's Cost of Goods Sold for the three months ended in Dec. 2023 was $1,509 Mil. Finning International's Average Total Inventories for the quarter that ended in Dec. 2023 was $2,139 Mil. Finning International's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.71.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Finning International's Days Inventory for the three months ended in Dec. 2023 was 129.35.

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. Finning International's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 1.08.

Finning International Inventory Turnover Historical Data

The historical data trend for Finning International'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.

* Premium members only.

Finning International Inventory Turnover Chart

Finning International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

Get a 7-Day Free Trial

3.00

2.71

3.47

3.32

3.01

Finning International 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															0.80	0.68	0.79	0.71	0.71

Finning International Inventory Turnover Calculation

Finning International'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 )
=	5926.506	/ (	(1811.557	+	2119.857)	/	2 )
=	5926.506	/	1965.707
=	3.01

Finning International'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 )
=	1508.647	/ (	(2157.268	+	2119.857)	/	2 )
=	1508.647	/	2138.5625
=	0.71

Finning International (OTCPK:FINGF) 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.

Finning International'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
	=	2138.5625	/	1508.647	*	365 / 4
	=	129.35

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.

Finning International'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 )
	=	2138.5625	/	1985.689
	=	1.08

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.

Finning International Inventory Turnover Related Terms

Thank you for viewing the detailed overview of Finning International's Inventory Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.

Finning International (Finning International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Finning International Inc (OTCPK:FINGF) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

CIH:Germany FTT:Canada

Address

19100 94th Avenue, Surrey, BC, CAN, V4N 5C3

Website

https://www.finning.com

Finning International Inc is a dealer and distributor of heavy-duty machinery and parts of the Caterpillar brand. The company sells and rents Caterpillar machinery to the mining, construction, petroleum, forestry, and power system application industries. Finning International further provides parts and services for equipment and engines to its customers via its owned distribution network and buys and sells used equipment domestically and internationally after reconditioning or rebuilding the machinery. The company operates in Canada, South America, UK and Ireland, and others.