Dis-Chem Pharmacies (JSE:DCP) Inventory Turnover : 2.09 (As of Aug. 2023)

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What is Dis-Chem Pharmacies 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. Dis-Chem Pharmacies's Cost of Goods Sold for the six months ended in Aug. 2023 was R13,876 Mil. Dis-Chem Pharmacies's Average Total Inventories for the quarter that ended in Aug. 2023 was R6,642 Mil. Dis-Chem Pharmacies's Inventory Turnover for the quarter that ended in Aug. 2023 was 2.09.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Dis-Chem Pharmacies's Days Inventory for the six months ended in Aug. 2023 was 87.35.

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. Dis-Chem Pharmacies's Inventory-to-Revenue for the quarter that ended in Aug. 2023 was 0.37.

Dis-Chem Pharmacies Inventory Turnover Historical Data

The historical data trend for Dis-Chem Pharmacies'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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Dis-Chem Pharmacies Inventory Turnover Chart

Dis-Chem Pharmacies Annual Data

Trend

Feb14

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Inventory Turnover

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3.57

3.83

4.01

4.12

4.14

Dis-Chem Pharmacies Semi-Annual Data
	Feb14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23
Inventory Turnover	Get a 7-Day Free Trial														2.08	2.10	2.11	2.02	2.09

Dis-Chem Pharmacies Inventory Turnover Calculation

Dis-Chem Pharmacies's Inventory Turnover for the fiscal year that ended in Feb. 2023 is calculated as

	Inventory Turnover (A: Feb. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Feb. 2023 )	/ (	(Total Inventories (A: Feb. 2022 )	+	Total Inventories (A: Feb. 2023 ))	/	count )
=	25076.217	/ (	(5758.858	+	6356.781)	/	2 )
=	25076.217	/	6057.8195
=	4.14

Dis-Chem Pharmacies's Inventory Turnover for the quarter that ended in Aug. 2023 is calculated as

	Inventory Turnover (Q: Aug. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Aug. 2023 )	/ (	(Total Inventories (Q: Feb. 2023 )	+	Total Inventories (Q: Aug. 2023 ))	/	count )
=	13876.296	/ (	(6356.781	+	6927.032)	/	2 )
=	13876.296	/	6641.9065
=	2.09

Dis-Chem Pharmacies (JSE:DCP) 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.

Dis-Chem Pharmacies's Days Inventory for the six months ended in Aug. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Aug. 2023 )	/	Cost of Goods Sold (Q: Aug. 2023 )	*	Days in Period
	=	6641.9065	/	13876.296	*	365 / 2
	=	87.35

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.

Dis-Chem Pharmacies's Inventory to Revenue for the quarter that ended in Aug. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Aug. 2023 )	/	Revenue (Q: Aug. 2023 )
	=	6641.9065	/	17855.999
	=	0.37

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.

Dis-Chem Pharmacies Inventory Turnover Related Terms

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Dis-Chem Pharmacies (JSE:DCP) Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Dis-Chem Pharmacies Ltd (JSE:DCP) » Definitions » Inventory Turnover

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Address

23 Stag Road, Glen Austin, Midrand, Johannesburg, GT, ZAF, 1685

Website

https://www.dischem.co.za

Dis-Chem Pharmacies Ltd is a pharmaceutical company based in South Africa. Its product portfolio includes personal care products, beauty products, healthcare and nutrition products, and dispensary and baby care products. The operating segments of the group are Retail and Wholesale. It derives maximum revenue from the Retail segment, which includes company stores, retailers of pharmaceutical and a variety of health and beauty products, as well as pharma-logistic services and oncology and retailers of pharmaceutical products. The Wholesale segment consists of the CJ wholesale and company distribution businesses, wholesalers of pharmaceuticals, and a variety of health and beauty products. Geographically, the group carries its business operations principally in South Africa.