Hills (ASX:HIL) Inventory Turnover : 2.93 (As of Dec. 2022)

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What is Hills 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. Hills's Cost of Goods Sold for the six months ended in Dec. 2022 was A$12.00 Mil. Hills's Average Total Inventories for the quarter that ended in Dec. 2022 was A$4.09 Mil. Hills's Inventory Turnover for the quarter that ended in Dec. 2022 was 2.93.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Hills's Days Inventory for the six months ended in Dec. 2022 was 62.25.

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. Hills's Inventory-to-Revenue for the quarter that ended in Dec. 2022 was 0.18.

Hills Inventory Turnover Historical Data

The historical data trend for Hills'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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Hills Inventory Turnover Chart

Hills Annual Data

Trend

Jun13

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Inventory Turnover

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4.09

4.28

4.62

5.38

1.86

Hills Semi-Annual Data
	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22
Inventory Turnover	Get a 7-Day Free Trial															2.80	2.77	2.92	-3.34	2.93

Hills Inventory Turnover Calculation

Hills's Inventory Turnover for the fiscal year that ended in Jun. 2022 is calculated as

	Inventory Turnover (A: Jun. 2022 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jun. 2022 )	/ (	(Total Inventories (A: Jun. 2021 )	+	Total Inventories (A: Jun. 2022 ))	/	count )
=	23.398	/ (	(22.001	+	3.153)	/	2 )
=	23.398	/	12.577
=	1.86

Hills's Inventory Turnover for the quarter that ended in Dec. 2022 is calculated as

	Inventory Turnover (Q: Dec. 2022 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2022 )	/ (	(Total Inventories (Q: Jun. 2022 )	+	Total Inventories (Q: Dec. 2022 ))	/	count )
=	11.997	/ (	(3.153	+	5.031)	/	2 )
=	11.997	/	4.092
=	2.93

Hills (ASX:HIL) 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.

Hills's Days Inventory for the six months ended in Dec. 2022 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2022 )	/	Cost of Goods Sold (Q: Dec. 2022 )	*	Days in Period
	=	4.092	/	11.997	*	365 / 2
	=	62.25

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.

Hills's Inventory to Revenue for the quarter that ended in Dec. 2022 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2022 )	/	Revenue (Q: Dec. 2022 )
	=	4.092	/	22.499
	=	0.18

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.

Hills Inventory Turnover Related Terms

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Hills (ASX:HIL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Hills Ltd (ASX:HIL) » Definitions » Inventory Turnover

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Traded in Other Exchanges

N/A

Address

3-29 Birnie Avenue, Unit 1, Building F, Lidcombe, NSW, AUS, 2141

Website

https://www.hills.com.au

Hills Ltd provides technology products and service solutions. Its segments include Hills Health Solutions and Hills Distribution. Hills Health Solutions is engaged in the design, supply, and installation of health technology solutions, nurse call and patient engagement, and other related solutions including security, Wi-Fi, and telephony into the health and aged care sectors. Hills Distribution is engaged in providing a diverse range of products and solutions to assist customers, support end-users within the Satellite, Security, Surveillance, and IT markets. The company earns the majority of its revenue from the Hills Distribution segment. Geographically, the company operates in Australia and New Zealand.