Morrison (Wm) Supermarkets (LSE:MRW) Inventory Turnover : 11.37 (As of Jul. 2021)

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What is Morrison (Wm) Supermarkets 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. Morrison (Wm) Supermarkets's Cost of Goods Sold for the six months ended in Jul. 2021 was £8,827 Mil. Morrison (Wm) Supermarkets's Average Total Inventories for the quarter that ended in Jul. 2021 was £777 Mil. Morrison (Wm) Supermarkets's Inventory Turnover for the quarter that ended in Jul. 2021 was 11.37.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Morrison (Wm) Supermarkets's Days Inventory for the six months ended in Jul. 2021 was 16.05.

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. Morrison (Wm) Supermarkets's Inventory-to-Revenue for the quarter that ended in Jul. 2021 was 0.09.

Morrison (Wm) Supermarkets Inventory Turnover Historical Data

The historical data trend for Morrison (Wm) Supermarkets'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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Morrison (Wm) Supermarkets Inventory Turnover Chart

Morrison (Wm) Supermarkets Annual Data

Trend

Jan12

Jan13

Jan14

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Inventory Turnover

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25.55

25.58

24.42

24.63

23.35

Morrison (Wm) Supermarkets Semi-Annual Data
	Jan12	Jul12	Jan13	Jul13	Jan14	Jul14	Jan15	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21
Inventory Turnover	Get a 7-Day Free Trial															13.11	13.54	12.50	11.65	11.37

Morrison (Wm) Supermarkets Inventory Turnover Calculation

Morrison (Wm) Supermarkets's Inventory Turnover for the fiscal year that ended in Jan. 2021 is calculated as

	Inventory Turnover (A: Jan. 2021 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jan. 2021 )	/ (	(Total Inventories (A: Jan. 2020 )	+	Total Inventories (A: Jan. 2021 ))	/	count )
=	17210	/ (	(660	+	814)	/	2 )
=	17210	/	737
=	23.35

Morrison (Wm) Supermarkets's Inventory Turnover for the quarter that ended in Jul. 2021 is calculated as

	Inventory Turnover (Q: Jul. 2021 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jul. 2021 )	/ (	(Total Inventories (Q: Jan. 2021 )	+	Total Inventories (Q: Jul. 2021 ))	/	count )
=	8827	/ (	(814	+	739)	/	2 )
=	8827	/	776.5
=	11.37

Morrison (Wm) Supermarkets (LSE:MRW) 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.

Morrison (Wm) Supermarkets's Days Inventory for the six months ended in Jul. 2021 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jul. 2021 )	/	Cost of Goods Sold (Q: Jul. 2021 )	*	Days in Period
	=	776.5	/	8827	*	365 / 2
	=	16.05

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.

Morrison (Wm) Supermarkets's Inventory to Revenue for the quarter that ended in Jul. 2021 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jul. 2021 )	/	Revenue (Q: Jul. 2021 )
	=	776.5	/	9054
	=	0.09

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.

Morrison (Wm) Supermarkets Inventory Turnover Related Terms

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Morrison (Wm) Supermarkets (LSE:MRW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Morrison (Wm) Supermarkets PLC (LSE:MRW) » Definitions » Inventory Turnover

Comparable Companies

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N/A

Address

Gain Lane, Hilmore House, Bradford, West Yorkshire, GBR, BD3 7DL

Website

https://www.morrisons.com

Founded by William Morrison in 1899, Wm Morrison Supermarkets is the U.K.'s fourth- largest grocery chain, with a market share of around 10%. The 2004 takeover of rival Safeway transformed the firm in terms of scale and gave it a significant presence outside its base in Northern England. The company operates about 500 stores, entirely in the United Kingdom. Morrisons has an online presence via a partnership with Ocado and Amazon and has lately been trying to expand its wholesale channel with new agreements (McColl's).

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