Li & Fung (Li & Fung) Inventory Turnover : 28.99 (As of Dec. 2019)

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What is Li & Fung 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 & Fung's Cost of Goods Sold for the six months ended in Dec. 2019 was $5,428 Mil. Li & Fung's Average Total Inventories for the quarter that ended in Dec. 2019 was $187 Mil. Li & Fung's Inventory Turnover for the quarter that ended in Dec. 2019 was 28.99.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Li & Fung's Days Inventory for the six months ended in Dec. 2019 was 6.30.

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 & Fung's Inventory-to-Revenue for the quarter that ended in Dec. 2019 was 0.03.

Li & Fung Inventory Turnover Historical Data

The historical data trend for Li & Fung'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 & Fung Inventory Turnover Chart

Li & Fung Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Inventory Turnover

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29.47

31.47

57.25

64.44

56.39

Li & Fung Semi-Annual Data
	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19
Inventory Turnover	Get a 7-Day Free Trial															28.19	32.87	32.48	22.63	28.99

Li & Fung Inventory Turnover Calculation

Li & Fung's Inventory Turnover for the fiscal year that ended in Dec. 2019 is calculated as

	Inventory Turnover (A: Dec. 2019 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2019 )	/ (	(Total Inventories (A: Dec. 2018 )	+	Total Inventories (A: Dec. 2019 ))	/	count )
=	10221.721	/ (	(205.877	+	156.644)	/	2 )
=	10221.721	/	181.2605
=	56.39

Li & Fung's Inventory Turnover for the quarter that ended in Dec. 2019 is calculated as

	Inventory Turnover (Q: Dec. 2019 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2019 )	/ (	(Total Inventories (Q: Jun. 2019 )	+	Total Inventories (Q: Dec. 2019 ))	/	count )
=	5427.812	/ (	(217.806	+	156.644)	/	2 )
=	5427.812	/	187.225
=	28.99

Li & Fung (OTCPK:LFUGF) 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 & Fung's Days Inventory for the six months ended in Dec. 2019 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2019 )	/	Cost of Goods Sold (Q: Dec. 2019 )	*	Days in Period
	=	187.225	/	5427.812	*	365 / 2
	=	6.30

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 & Fung's Inventory to Revenue for the quarter that ended in Dec. 2019 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2019 )	/	Revenue (Q: Dec. 2019 )
	=	187.225	/	6057.12
	=	0.03

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 & Fung Inventory Turnover Related Terms

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Li & Fung (Li & Fung) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Li & Fung Ltd (OTCPK:LFUGF) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

31 Victoria Street, Victoria Place, 5th Floor, Hamilton, BMU, HM 10

Website

https://www.lifung.com

Li & Fung Ltd is a supply-chain manager that serves retailers globally with sourcing and logistics services. The company's operating segment includes Services and Products. It generates maximum revenue from the Services segment. The Services segment consists of Supply Chain Solutions and Logistics businesses. Its Products segment consists of the Onshore Wholesale business and the three Product Verticals (furniture, beauty, and sweaters) representing its principal-to-principal business. Geographically, it derives a majority of revenue from the United States of America.

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