GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Metcash Ltd (ASX:MTS) » Definitions » Inventory Turnover

Metcash (ASX:MTS) Inventory Turnover

: 5.32 (As of Oct. 2023)
View and export this data going back to 1994. Start your Free Trial

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. Metcash's Cost of Goods Sold for the six months ended in Oct. 2023 was A$6,881 Mil. Metcash's Average Total Inventories for the quarter that ended in Oct. 2023 was A$1,294 Mil. Metcash's Inventory Turnover for the quarter that ended in Oct. 2023 was 5.32.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Metcash's Days Inventory for the six months ended in Oct. 2023 was 34.31.

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. Metcash's Inventory-to-Revenue for the quarter that ended in Oct. 2023 was 0.17.


Metcash Inventory Turnover Historical Data

The historical data trend for Metcash'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.

* Premium members only.

Metcash Annual Data
Trend Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23
Inventory Turnover
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.56 12.93 12.58 12.64 12.09

Metcash Semi-Annual Data
Apr14 Oct14 Apr15 Oct15 Apr16 Oct16 Apr17 Oct17 Apr18 Oct18 Apr19 Oct19 Apr20 Oct20 Apr21 Oct21 Apr22 Oct22 Apr23 Oct23
Inventory Turnover Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.11 6.50 5.81 5.92 5.32

Metcash Inventory Turnover Calculation

Metcash's Inventory Turnover for the fiscal year that ended in Apr. 2023 is calculated as

Inventory Turnover (A: Apr. 2023 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Apr. 2023 ) / ((Total Inventories (A: Apr. 2022 ) + Total Inventories (A: Apr. 2023 )) / count )
=13961.1 / ((1125.2 + 1183.4) / 2 )
=13961.1 / 1154.3
=12.09

Metcash's Inventory Turnover for the quarter that ended in Oct. 2023 is calculated as

Inventory Turnover (Q: Oct. 2023 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Oct. 2023 ) / ((Total Inventories (Q: Apr. 2023 ) + Total Inventories (Q: Oct. 2023 )) / count )
=6880.6 / ((1183.4 + 1403.8) / 2 )
=6880.6 / 1293.6
=5.32

* 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.


Metcash  (ASX:MTS) 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.

Metcash's Days Inventory for the six months ended in Oct. 2023 is calculated as:

Days Inventory =Average Total Inventories (Q: Oct. 2023 )/Cost of Goods Sold (Q: Oct. 2023 )*Days in Period
=1293.6/6880.6*365 / 2
=34.31

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.

Metcash's Inventory to Revenue for the quarter that ended in Oct. 2023 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Oct. 2023 ) / Revenue (Q: Oct. 2023 )
=1293.6 / 7837.7
=0.17

* 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.


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.


Metcash Inventory Turnover Related Terms

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


Metcash (ASX:MTS) Business Description

Traded in Other Exchanges
Address
1 Thomas Holt Drive, Macquarie Park, Sydney, NSW, AUS, 2113
Metcash is a wholesale distribution and marketing company specialising in food, liquor, and hardware. Centralised wholesale distribution enables retailers to gain access to the combined scale of many retailers to negotiate material volume discounts.The food segment distributes of a range of products and services to independent supermarket and convenience stores. The hardware segment distributes hardware products to independent retail outlets and operates company-owned stores. The liquor segment distributes liquor products to independent retailers and pubs.

Metcash (ASX:MTS) Headlines

From GuruFocus

Metcash Stock Is Estimated To Be Modestly Overvalued

By GF Value GF Value 05-11-2021