Premier Foods (Premier Foods) Inventory Turnover : 2.69 (As of Sep. 2023)

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What is Premier Foods 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. Premier Foods's Cost of Goods Sold for the six months ended in Sep. 2023 was $381 Mil. Premier Foods's Average Total Inventories for the quarter that ended in Sep. 2023 was $142 Mil. Premier Foods's Inventory Turnover for the quarter that ended in Sep. 2023 was 2.69.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Premier Foods's Days Inventory for the six months ended in Sep. 2023 was 67.90.

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. Premier Foods's Inventory-to-Revenue for the quarter that ended in Sep. 2023 was 0.23.

Premier Foods Inventory Turnover Historical Data

The historical data trend for Premier Foods'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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Premier Foods Inventory Turnover Chart

Premier Foods Annual Data

Trend

Dec12

Dec13

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Inventory Turnover

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6.83

7.29

9.45

7.62

7.26

Premier Foods Semi-Annual Data
	Jun13	Dec13	Jun14	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Inventory Turnover	Get a 7-Day Free Trial															3.22	3.66	2.64	3.69	2.69

Premier Foods Inventory Turnover Calculation

Premier Foods's Inventory Turnover for the fiscal year that ended in Mar. 2023 is calculated as

	Inventory Turnover (A: Mar. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2023 )	/ (	(Total Inventories (A: Mar. 2022 )	+	Total Inventories (A: Mar. 2023 ))	/	count )
=	786.65	/ (	(102.899	+	113.714)	/	2 )
=	786.65	/	108.3065
=	7.26

Premier Foods's Inventory Turnover for the quarter that ended in Sep. 2023 is calculated as

	Inventory Turnover (Q: Sep. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2023 )	/ (	(Total Inventories (Q: Mar. 2023 )	+	Total Inventories (Q: Sep. 2023 ))	/	count )
=	381.188	/ (	(113.714	+	169.926)	/	2 )
=	381.188	/	141.82
=	2.69

Premier Foods (OTCPK:PRRFY) 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.

Premier Foods's Days Inventory for the six months ended in Sep. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2023 )	/	Cost of Goods Sold (Q: Sep. 2023 )	*	Days in Period
	=	141.82	/	381.188	*	365 / 2
	=	67.90

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.

Premier Foods's Inventory to Revenue for the quarter that ended in Sep. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	141.82	/	611.51
	=	0.23

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.

Premier Foods Inventory Turnover Related Terms

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Premier Foods (Premier Foods) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Premier Foods PLC (OTCPK:PRRFY) » Definitions » Inventory Turnover

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PFDl:UK PFD:UK FOJ1:Germany

Address

Premier House, Griffiths Way, Centrium Business Park, Saint Albans, Hertfordshire, GBR, AL1 2RE

Website

https://www.premierfoods.co.uk

Premier Foods PLC is a food manufacturing company. It manufactures, processes, and distributes food products. The company's operating segments include Grocery and Sweet Treats. Grocery segment primarily sells savoury ambient food products. The Sweet Treats segment sells sweet ambient food products. It generates maximum revenue from the Grocery segment. Geographically, it derives a majority of its revenue from the United Kingdom and also has a presence in Other Europe and Rest of world. Some of the company brands include Ambrosia, Angel Delight, Atora, Batchelors, Be-Ro, Bird's, Bisto, Cadbury, Coffee Compliment, Homepride, and others.

Premier Foods (Premier Foods) Headlines

From GuruFocus

John Paulson Urges Premier Foods to Take Buyout Offer

By Holly LaFon Holly LaFon • 03-28-2016

Premier Foods PLC Stock Shows Every Sign Of Being Significantly Overvalued

By GF Value • 07-10-2021

Premier Foods Gets a Write-Up in Barron's

By Holmes Osborne, CFA Holmes Osborne, CFA • 01-13-2020