Speedy Hire (LSE:SDY) Inventory Turnover : 7.60 (As of Sep. 2023)

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What is Speedy Hire 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. Speedy Hire's Cost of Goods Sold for the six months ended in Sep. 2023 was £95.8 Mil. Speedy Hire's Average Total Inventories for the quarter that ended in Sep. 2023 was £12.6 Mil. Speedy Hire's Inventory Turnover for the quarter that ended in Sep. 2023 was 7.60.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Speedy Hire's Days Inventory for the six months ended in Sep. 2023 was 24.00.

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. Speedy Hire's Inventory-to-Revenue for the quarter that ended in Sep. 2023 was 0.06.

Speedy Hire Inventory Turnover Historical Data

The historical data trend for Speedy Hire'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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Speedy Hire Inventory Turnover Chart

Speedy Hire Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Inventory Turnover

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21.21

17.66

17.44

20.33

21.31

Speedy Hire Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Inventory Turnover	Get a 7-Day Free Trial															9.60	10.19	9.60	9.90	7.60

Speedy Hire Inventory Turnover Calculation

Speedy Hire's Inventory Turnover for the fiscal year that ended in Mar. 2023 is calculated as

	Inventory Turnover (A: Mar. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2023 )	/ (	(Total Inventories (A: Mar. 2022 )	+	Total Inventories (A: Mar. 2023 ))	/	count )
=	221.6	/ (	(8.1	+	12.7)	/	2 )
=	221.6	/	10.4
=	21.31

Speedy Hire's Inventory Turnover for the quarter that ended in Sep. 2023 is calculated as

	Inventory Turnover (Q: Sep. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2023 )	/ (	(Total Inventories (Q: Mar. 2023 )	+	Total Inventories (Q: Sep. 2023 ))	/	count )
=	95.8	/ (	(12.7	+	12.5)	/	2 )
=	95.8	/	12.6
=	7.60

Speedy Hire (LSE:SDY) 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.

Speedy Hire's Days Inventory for the six months ended in Sep. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2023 )	/	Cost of Goods Sold (Q: Sep. 2023 )	*	Days in Period
	=	12.6	/	95.8	*	365 / 2
	=	24.00

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.

Speedy Hire's Inventory to Revenue for the quarter that ended in Sep. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	12.6	/	208.5
	=	0.06

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.

Speedy Hire Inventory Turnover Related Terms

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Speedy Hire (LSE:SDY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Speedy Hire PLC (LSE:SDY) » Definitions » Inventory Turnover

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SDYl:UK SDY.GB:UK 5HN:Germany

Address

Chase House, 16 The Parks, Newton-le-Willows, Merseyside, GBR, WA12 0JQ

Website

https://www.speedyservices.com

Speedy Hire PLC is a UK-based company engaged in the provision of equipment for hire and sale and associated services to construction, infrastructure, industry, and related industries. It delivers asset management with tailored services and a continued commitment to relationship management. It generates revenue from Hire and related activities followed by services provided. The company's geographical segments are the United Kingdom and Ireland, of which the majority of its revenue comes from the United Kingdom.