Farfetch (Farfetch) Days Inventory : 109.04 (As of Jun. 2023)

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What is Farfetch Days Inventory?

Days Inventory is also known as Days Sales of Inventory (DSI). Farfetch's Average Total Inventories for the three months ended in Jun. 2023 was $393 Mil. Farfetch's Cost of Goods Sold for the three months ended in Jun. 2023 was $329 Mil. Hence, Farfetch's Days Inventory for the three months ended in Jun. 2023 was 109.04.

The historical rank and industry rank for Farfetch's Days Inventory or its related term are showing as below:

FTCHF' s Days Inventory Range Over the Past 10 Years
Min: 39.61 Med: 61.48 Max: 94.02
Current: 94.02

During the past 8 years, Farfetch's highest Days Inventory was 94.02. The lowest was 39.61. And the median was 61.48.

FTCHF's Days Inventory is ranked better than
57.12% of 1068 companies
in the Retail - Cyclical industry
Industry Median: 110.545 vs FTCHF: 94.02

Farfetch's Days Inventory increased from Jun. 2022 (86.76) to Jun. 2023 (109.04). It might indicate that Farfetch's sales slowed down.

Warning Sign:

If a company builds up inventory, it may mean it is having difficulties selling its goods.

Inventory Turnover measures how fast the company turns over its inventory within a year. Farfetch's Inventory Turnover for the three months ended in Jun. 2023 was 0.84.

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. Farfetch's Inventory-to-Revenue for the three months ended in Jun. 2023 was 0.69.

Farfetch Days Inventory Historical Data

The historical data trend for Farfetch's Days Inventory 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.

* Premium members only.

Farfetch Days Inventory Chart

Farfetch Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Days Inventory

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66.99

61.48

55.26

59.01

84.88

Farfetch Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Days Inventory	Get a 7-Day Free Trial															86.76	83.25	80.07	100.62	109.04

Competitive Comparison of Farfetch's Days Inventory

For the Internet Retail subindustry, Farfetch's Days Inventory, along with its competitors' market caps and Days Inventory data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Farfetch's Days Inventory Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Farfetch's Days Inventory distribution charts can be found below:

* The bar in red indicates where Farfetch's Days Inventory falls into.

Farfetch Days Inventory Calculation

Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Farfetch's Days Inventory for the fiscal year that ended in Dec. 2022 is calculated as

	Days Inventory (A: Dec. 2022 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (A: Dec. 2021 )	+	Total Inventories (A: Dec. 2022 ))	/	count )	/	Cost of Goods Sold (A: Dec. 2022 )	*	Days in Period
=	( (255.664	+	345.969)	/	2 )	/	1293.505	*	365
=	300.8165					/	1293.505	*	365
=	84.88

Farfetch's Days Inventory for the quarter that ended in Jun. 2023 is calculated as:

	Days Inventory (Q: Jun. 2023 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (Q: Mar. 2023 )	+	Total Inventories (Q: Jun. 2023 ))	/	count )	/	Cost of Goods Sold (Q: Jun. 2023 )	*	Days in Period
=	( (350.375	+	436.408)	/	2 )	/	329.213	*	365 / 4
=	393.3915					/	329.213	*	365 / 4
=	109.04

Farfetch (OTCPK:FTCHF) Days Inventory Explanation

Days Inventory indicates the liquidity of the inventory. Generally, a lower Days Inventory is preferred as it indicates a shorter duration to clear off the inventory. An increase of the ratio may indicate the company's sales slowed. Similar ratios related to Days Inventory are:

1. Inventory Turnover measures how fast the company turns over its inventory within a year.

Farfetch's Inventory Turnover for the three months ended in Jun. 2023 is calculated as

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	329.213	/	393.3915
	=	0.84

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.

Farfetch's Inventory to Revenue for the three months ended in Jun. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories	/	Revenue
	=	393.3915	/	572.086
	=	0.69

Be Aware

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.

Farfetch Days Inventory Related Terms

Thank you for viewing the detailed overview of Farfetch's Days Inventory provided by GuruFocus.com. Please click on the following links to see related term pages.

Farfetch (Farfetch) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Farfetch Ltd (OTCPK:FTCHF) » Definitions » Days Inventory

Comparable Companies

Traded in Other Exchanges

FTCH:Mexico F1F:Germany

Address

The Bower, 211 Old Street, London, GBR, EC1V 9NR

Website

https://www.farfetchinvestors.com

Farfetch is an online platform connecting sellers and buyers of personal luxury goods. It was founded in 2008. The company partners with over 1,000 luxury goods sellers to offer their inventory on the platform. When making the retailers' stock available to almost a million active customers, the company charges a cut of over 30% (third-party take rate). The company operates digital marketplace platform Farfetch, Browns stores, acquired branded company New Guard Group and Farfetch solutions, powering e-commerce operations of luxury brands.