The a2 Milk Co (The a2 Milk Co) Inventory Turnover : 2.23 (As of Dec. 2023)

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What is The a2 Milk Co 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. The a2 Milk Co's Cost of Goods Sold for the six months ended in Dec. 2023 was $269 Mil. The a2 Milk Co's Average Total Inventories for the quarter that ended in Dec. 2023 was $121 Mil. The a2 Milk Co's Inventory Turnover for the quarter that ended in Dec. 2023 was 2.23.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. The a2 Milk Co's Days Inventory for the six months ended in Dec. 2023 was 81.75.

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. The a2 Milk Co's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.24.

The a2 Milk Co Inventory Turnover Historical Data

The historical data trend for The a2 Milk Co'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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The a2 Milk Co Inventory Turnover Chart

The a2 Milk Co Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Inventory Turnover

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6.72

5.90

5.66

5.88

5.03

The a2 Milk Co 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															2.89	3.08	2.55	2.31	2.23

The a2 Milk Co Inventory Turnover Calculation

The a2 Milk Co'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 )
=	522.654	/ (	(88.973	+	118.675)	/	2 )
=	522.654	/	103.824
=	5.03

The a2 Milk Co'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 )
=	269.01	/ (	(118.675	+	122.326)	/	2 )
=	269.01	/	120.5005
=	2.23

The a2 Milk Co (OTCPK:ACOPF) 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.

The a2 Milk Co'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
	=	120.5005	/	269.01	*	365 / 2
	=	81.75

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.

The a2 Milk Co'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 )
	=	120.5005	/	504.729
	=	0.24

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.

The a2 Milk Co Inventory Turnover Related Terms

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The a2 Milk Co (The a2 Milk Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » The a2 Milk Co Ltd (OTCPK:ACOPF) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

ACOPY:USA ATM:New Zealand 14L:Germany A2M:Australia

Address

51 Shortland Street, P.O. Box 163, Level 10, Auckland, NTL, NZL, 1010

Website

https://www.thea2milkcompany.com

A2 Milk is a New Zealand licensor and marketer of fresh milk, infant formula, and other dairy products that lack the A1 beta-casein protein. The firm was founded in 2000 by Corran McLachlan, who developed a genetic test to determine which proteins a cow produces in its milk, and business partner Howard Paterson. The company has been through a tumultuous history of receivership, legal battles, and strategic shifts, but emerged in its current structure in 2006 and listed publicly in March 2013.

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