Ambev (ABEV) Inventory Turnover : 0.94 (As of Dec. 2023)

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What is Ambev 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. Ambev's Cost of Goods Sold for the three months ended in Dec. 2023 was $1,898 Mil. Ambev's Average Total Inventories for the quarter that ended in Dec. 2023 was $2,022 Mil. Ambev's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.94.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Ambev's Days Inventory for the three months ended in Dec. 2023 was 97.20.

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. Ambev's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.50.

Ambev Inventory Turnover Historical Data

The historical data trend for Ambev'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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Ambev Inventory Turnover Chart

Ambev Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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3.93

3.78

3.90

3.65

3.77

Ambev Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															0.89	0.81	0.81	0.89	0.94

Ambev Inventory Turnover Calculation

Ambev'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 )
=	8019.021	/ (	(2395.375	+	1853.361)	/	2 )
=	8019.021	/	2124.368
=	3.77

Ambev'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: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	1898.3	/ (	(2190.647	+	1853.361)	/	2 )
=	1898.3	/	2022.004
=	0.94

Ambev (NYSE:ABEV) 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.

Ambev's Days Inventory for the three 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
	=	2022.004	/	1898.3	*	365 / 4
	=	97.20

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.

Ambev'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 )
	=	2022.004	/	4079.611
	=	0.50

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.

Ambev Inventory Turnover Related Terms

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Ambev (ABEV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Ambev SA (NYSE:ABEV) » Definitions » Inventory Turnover

Traded in Other Exchanges

ABEV:Mexico AMNA:Germany ABEV3:Brazil ABEV:Argentina

Address

Rua Doutor Renato Paes de Barros, 1017, 3rd Floor, Sao Paulo, SP, BRA, 04530-001

Website

https://www.ambev.com.br

Ambev is the largest brewer in Latin America and the Caribbean and is Anheuser-Busch InBev's subsidiary in the region. It produces, distributes, and sells beer and PepsiCo products in Brazil and other Latin American countries and owns Argentina's largest brewer, Quinsa. Ambev was formed in 1999 through the merger of Brazil's two largest beverage companies, Brahma and Antarctica. In 2004, Ambev combined with Canadian brewer Labatt, giving Interbrew (now AB InBev) a controlling interest of 61.8% as at the end of 2022.