ConvaTec Group (LSE:CTEC) Inventory Turnover : 1.19 (As of Dec. 2023)

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What is ConvaTec Group 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. ConvaTec Group's Cost of Goods Sold for the six months ended in Dec. 2023 was £378 Mil. ConvaTec Group's Average Total Inventories for the quarter that ended in Dec. 2023 was £318 Mil. ConvaTec Group's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.19.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. ConvaTec Group's Days Inventory for the six months ended in Dec. 2023 was 153.38.

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. ConvaTec Group's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.37.

ConvaTec Group Inventory Turnover Historical Data

The historical data trend for ConvaTec Group'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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ConvaTec Group Inventory Turnover Chart

ConvaTec Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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2.93

2.99

3.04

3.13

2.52

ConvaTec Group Semi-Annual Data
	Dec13	Dec14	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														1.58	1.62	1.47	1.22	1.19

ConvaTec Group Inventory Turnover Calculation

ConvaTec Group's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	744.022	/ (	(276.595	+	312.919)	/	2 )
=	744.022	/	294.757
=	2.52

ConvaTec Group'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 )
=	378.173	/ (	(322.74	+	312.919)	/	2 )
=	378.173	/	317.8295
=	1.19

ConvaTec Group (LSE:CTEC) 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.

ConvaTec Group'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
	=	317.8295	/	378.173	*	365 / 2
	=	153.38

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.

ConvaTec Group'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 )
	=	317.8295	/	858.651
	=	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.

ConvaTec Group Inventory Turnover Related Terms

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ConvaTec Group (LSE:CTEC) Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » ConvaTec Group PLC (LSE:CTEC) » Definitions » Inventory Turnover

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CNVVF:USA CNVVY:USA CTECl:UK

Address

23 Forbury Road, 3 Forbury Place, Reading, GBR, RG1 3JH

Website

https://www.convatecgroup.com

Originally spun out of Bristol-Myers Squibb, Convatec designs, manufactures, and markets advanced wound care, ostomy, continence care, and infusion sets for the acute-care hospital and chronic-care home settings. Advanced wound care and continence care are the largest divisions, accounting for 30% and 26% of total revenue, respectively. Ostomy contributes 25% of revenue and infusion sets 19%.