Sonic (SONC) Inventory Turnover : 47.91 (As of Aug. 2018)

View and export this data going back to 1991. Start your Free Trial

What is Sonic 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. Sonic's Cost of Goods Sold for the three months ended in Aug. 2018 was $85.0 Mil. Sonic's Average Total Inventories for the quarter that ended in Aug. 2018 was $1.8 Mil. Sonic's Inventory Turnover for the quarter that ended in Aug. 2018 was 47.91.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Sonic's Days Inventory for the three months ended in Aug. 2018 was 1.90.

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. Sonic's Inventory-to-Revenue for the quarter that ended in Aug. 2018 was 0.02.

Sonic Inventory Turnover Historical Data

The historical data trend for Sonic'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.

Sonic Inventory Turnover Chart

Sonic Annual Data

Trend

Aug09

Aug10

Aug11

Aug12

Aug13

Aug14

Aug15

Aug16

Aug17

Aug18

Inventory Turnover

Get a 7-Day Free Trial

97.37

101.47

99.88

88.25

98.70

Sonic Quarterly Data
	Nov13	Feb14	May14	Aug14	Nov14	Feb15	May15	Aug15	Nov15	Feb16	May16	Aug16	Nov16	Feb17	May17	Aug17	Nov17	Feb18	May18	Aug18
Inventory Turnover	Get a 7-Day Free Trial															45.29	23.08	-	-	47.91

Sonic Inventory Turnover Calculation

Sonic's Inventory Turnover for the fiscal year that ended in Aug. 2018 is calculated as

	Inventory Turnover (A: Aug. 2018 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Aug. 2018 )	/ (	(Total Inventories (A: Aug. 2017 )	+	Total Inventories (A: Aug. 2018 ))	/	count )
=	203.177	/ (	(2.343	+	1.774)	/	2 )
=	203.177	/	2.0585
=	98.70

Sonic's Inventory Turnover for the quarter that ended in Aug. 2018 is calculated as

	Inventory Turnover (Q: Aug. 2018 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Aug. 2018 )	/ (	(Total Inventories (Q: May. 2018 )	+	Total Inventories (Q: Aug. 2018 ))	/	count )
=	84.989	/ (	(0	+	1.774)	/	1 )
=	84.989	/	1.774
=	47.91

Sonic (NAS:SONC) 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.

Sonic's Days Inventory for the three months ended in Aug. 2018 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Aug. 2018 )	/	Cost of Goods Sold (Q: Aug. 2018 )	*	Days in Period
	=	1.774	/	84.989	*	365 / 4
	=	1.90

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.

Sonic's Inventory to Revenue for the quarter that ended in Aug. 2018 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Aug. 2018 )	/	Revenue (Q: Aug. 2018 )
	=	1.774	/	111.754
	=	0.02

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.

Sonic Inventory Turnover Related Terms

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

Sonic (SONC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Sonic Corp (NAS:SONC) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.sonicdrivein.com

Sonic Corp operates and franchises drive-in restaurants throughout the United States. The restaurants typically consist of a building that houses only a kitchen to go along with 16 to 24 parking spaces that have their own payment terminals, intercom speakers, and menu boards. Carhops serve customers in their cars. Many locations also have a drive-thru lane and patio seating as alternatives. Sonic franchises roughly 90% of its restaurants, and the royalty revenue the company earns on franchise sales contributes roughly a quarter of total company revenue. Company-operated stores provide the balance of total revenue. Sonic owns the property on which hundreds of its restaurants are located. For those properties that house franchised stores, franchisees lease from the company.

Executives

Steven A Davis	director	3776 SOUTH HIGH ST, COLUMBUS OH 43207
Lauren R Hobart	director	345 COURT STREET, CORAOPOLIS PA 15275
Tony Bartel	director	625 WESTPORT PARKWAY, GRAPEVINE TX 76051
Kathy L Taylor	director	C/O FREDERIC DORWART LAWYERS, 124 EAST FOURTH STREET, TULSA OK 74103
Pedro Claudia San	officer: President	300 JOHNNY BENCH DRIVE, OKLAHOMA CITY OK 73104
Kate S Lavelle	director	24089 3RD STREET, FAIRHOPE AL 36532
Federico F Pena	director	711 HIGH STREET, DES MOINES IA 50392-0300
J Larry Nichols	director	DEVON ENERGY CORP, 20 NORTH BROADWAY STE 1500, OKLAHOMA CITY OK 73102-8260
Southeastern Asset Management Inc/tn/	10 percent owner	6410 POPLAR AVENUE, SUITE 900, MEMPHIS TN 38119
Longleaf Partners Funds Trust	10 percent owner	C/O SOUTHEASTERN ASSET MANAGEMENT, 6410 POPLAR AVE, SUITE 900, MEMPHIS TN 38119
Todd Whitney Smith	officer: President and CMO	300 JOHNNY BENCH DRIVE, OKLAHOMA CITY OK 73104
Craig Jeffrey Miller	officer: Former Officer of Subsidiary	5008 HARTRIDGE WAY, GREENSBORO NC 27407
Robert M Rosenberg	director
Michael J Maples	director	2208 WINDSOR ROAD, AUSTIN TX 78703
Douglas N Benham	director