Loblaw (Loblaw) Inventory Turnover

: 1.69 (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. Loblaw's Cost of Goods Sold for the three months ended in Dec. 2023 was $7,348 Mil. Loblaw's Average Total Inventories for the quarter that ended in Dec. 2023 was $4,338 Mil. Loblaw's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.69.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Loblaw's Days Inventory for the three months ended in Dec. 2023 was 53.87.

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. Loblaw's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.40.

Loblaw Inventory Turnover Historical Data

The historical data trend for Loblaw'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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Loblaw Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

6.80

7.25

7.04

6.80

6.98

Loblaw Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover																1.64	1.51	1.67	2.17	1.69

Loblaw Inventory Turnover Calculation

Loblaw'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 )
=	30181.873	/ (	(4309.901	+	4338.104)	/	2 )
=	30181.873	/	4324.0025
=	6.98

Loblaw'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 )
=	7347.943	/ (	(4338.186	+	4338.104)	/	2 )
=	7347.943	/	4338.145
=	1.69

Loblaw (OTCPK:LBLCF) 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.

Loblaw'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
	=	4338.145	/	7347.943	*	365 / 4
	=	53.87

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.

Loblaw'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 )
	=	4338.145	/	10831.097
	=	0.40

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.

Loblaw Inventory Turnover Related Terms

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Loblaw (Loblaw) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Loblaw Companies Ltd (OTCPK:LBLCF) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

L.PR.B.PFD:Canada L:Canada

Address

1 President’s Choice Circle, Brampton, ON, CAN, L6Y 5S5

Website

https://www.loblaw.ca

Loblaw is Canada's largest retailer, operating 2,500 food retail and pharmacy stores across the country. Its main grocery banners include Loblaw, No Frills, and Maxi, and its pharmacy stores are mostly under the Shoppers Drug Mart banner, which it acquired in 2014. In addition to brand-name offerings, Loblaw offers private-label products under the President's Choice and No Name brands. Beyond retail, Loblaw runs the PC Optimum loyalty program and also offers credit cards and insurance brokerage, which are collectively referred to as financial services. George Weston is Loblaw's controlling shareholder with a 53% stake.

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