Harvey Norman Holdings (ASX:HVN) Inventory Turnover : 1.76 (As of Dec. 2023)

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What is Harvey Norman Holdings 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. Harvey Norman Holdings's Cost of Goods Sold for the six months ended in Dec. 2023 was A$1,017 Mil. Harvey Norman Holdings's Average Total Inventories for the quarter that ended in Dec. 2023 was A$579 Mil. Harvey Norman Holdings's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.76.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Harvey Norman Holdings's Days Inventory for the six months ended in Dec. 2023 was 103.83.

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. Harvey Norman Holdings's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.30.

Harvey Norman Holdings Inventory Turnover Historical Data

The historical data trend for Harvey Norman Holdings'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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Harvey Norman Holdings Inventory Turnover Chart

Harvey Norman Holdings Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Inventory Turnover

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4.08

3.95

4.22

3.73

3.52

Harvey Norman Holdings 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															1.90	1.63	1.80	1.53	1.76

Harvey Norman Holdings Inventory Turnover Calculation

Harvey Norman Holdings'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 )
=	1884.104	/ (	(524.274	+	545.658)	/	2 )
=	1884.104	/	534.966
=	3.52

Harvey Norman Holdings'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 )
=	1017.006	/ (	(545.658	+	611.608)	/	2 )
=	1017.006	/	578.633
=	1.76

Harvey Norman Holdings (ASX:HVN) 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.

Harvey Norman Holdings'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
	=	578.633	/	1017.006	*	365 / 2
	=	103.83

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.

Harvey Norman Holdings'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 )
	=	578.633	/	1899.661
	=	0.30

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.

Harvey Norman Holdings Inventory Turnover Related Terms

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Harvey Norman Holdings (ASX:HVN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Harvey Norman Holdings Ltd (ASX:HVN) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

HNORY:USA HNN:Germany

Address

A1 Richmond Road, Homebush West, Sydney, NSW, AUS, 2140

Website

https://www.harveynormanholdings.com.au

Harvey Norman Holdings Ltd is the franchisor of Harvey Norman, a leading Australia-based retailer that sells goods from the electrical, computer, furniture, entertainment, and bedding sectors. The majority of earnings are generated in Australia, with the international divisions gradually growing in significance.

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