British American Tobacco (British American Tobacco) Inventory Turnover

: 0.45 (As of Dec. 2023)

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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. British American Tobacco's Cost of Goods Sold for the six months ended in Dec. 2023 was $3,034 Mil. British American Tobacco's Average Total Inventories for the quarter that ended in Dec. 2023 was $6,682 Mil. British American Tobacco's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.45.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. British American Tobacco's Days Inventory for the six months ended in Dec. 2023 was 401.92.

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. British American Tobacco's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.38.

British American Tobacco Inventory Turnover Historical Data

The historical data trend for British American Tobacco'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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British American Tobacco Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

0.74

0.69

0.77

0.80

0.89

British American Tobacco Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Inventory Turnover																0.37	0.37	0.41	0.40	0.45

British American Tobacco Inventory Turnover Calculation

British American Tobacco'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 )
=	5874.684	/ (	(6907.43	+	6250.633)	/	2 )
=	5874.684	/	6579.0315
=	0.89

British American Tobacco'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: Jun. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	3034.177	/ (	(7113.636	+	6250.633)	/	2 )
=	3034.177	/	6682.1345
=	0.45

British American Tobacco (NYSE:BTI) 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.

British American Tobacco's Days Inventory for the six 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
	=	6682.1345	/	3034.177	*	365 / 2
	=	401.92

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.

British American Tobacco'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 )
	=	6682.1345	/	17521.519
	=	0.38

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.

British American Tobacco Inventory Turnover Related Terms

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British American Tobacco (British American Tobacco) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

BTI:South Africa BTAFF:USA BATSl:UK BATS:UK BMTA:Germany BMT:Germany BMT:Germany BMT:Germany BMTA:Germany BMT:Germany B1TI34:Brazil

Address

Globe House, 4 Temple Place, London, GBR, WC2R 2PG

Website

https://www.bat.com

Following the acquisition of Reynolds American, British American Tobacco is neck-and-neck with Philip Morris International to be the largest listed Global tobacco company--slightly larger than PMI on net revenue, but slightly smaller on total tobacco volume. British American's Global Drive Brands are Dunhill, Kent, Pall Mall, Lucky Strike, and Rothmans, and it also owns Newport and Camel in the U.S. The firm also sells vapor e-cigarettes, primarily its Vuse brand, heated tobacco, with Glo, as well Velo modern oral tobacco products. The company holds 29% of ITC Limited, the leading Indian cigarette-maker.