Persimmon (LSE:PSN) Inventory Turnover : 0.35 (As of Dec. 2023)

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What is Persimmon 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. Persimmon's Cost of Goods Sold for the six months ended in Dec. 2023 was £1,299 Mil. Persimmon's Average Total Inventories for the quarter that ended in Dec. 2023 was £3,703 Mil. Persimmon's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.35.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Persimmon's Days Inventory for the six months ended in Dec. 2023 was 520.43.

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. Persimmon's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 2.34.

Persimmon Inventory Turnover Historical Data

The historical data trend for Persimmon'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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Persimmon Inventory Turnover Chart

Persimmon Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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0.81

0.80

0.87

0.92

0.63

Persimmon 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	Get a 7-Day Free Trial															0.43	0.37	0.51	0.27	0.35

Persimmon Inventory Turnover Calculation

Persimmon'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 )
=	2253.1	/ (	(3462.9	+	3701.2)	/	2 )
=	2253.1	/	3582.05
=	0.63

Persimmon'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 )
=	1298.6	/ (	(3705.1	+	3701.2)	/	2 )
=	1298.6	/	3703.15
=	0.35

Persimmon (LSE:PSN) 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.

Persimmon'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
	=	3703.15	/	1298.6	*	365 / 2
	=	520.43

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.

Persimmon'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 )
	=	3703.15	/	1584.7
	=	2.34

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.

Persimmon Inventory Turnover Related Terms

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Persimmon (LSE:PSN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » Persimmon PLC (LSE:PSN) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

PSMMY:USA PSNl:UK OHP:Germany

Address

Persimmon House, Fulford, York, GBR, YO19 4FE

Website

https://www.persimmonhomes.com/corporate

Persimmon is the U.K.'s second largest residential property developer by revenue and dwelling completions, marketing homes under its three brands: Persimmon Homes, Charles Church, and Westbury Partnerships. Persimmon largely caters to the lower-priced segment of the newbuild market, attracting more first-time homebuyers than any of its peer homebuilders. Aligning with the typical business model employed by U.K. homebuilders, Persimmon is a vertically integrated speculative homebuilder.