WH Smith (LSE:SMWH) Inventory Turnover : 1.80 (As of Feb. 2024)

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What is WH Smith 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. WH Smith's Cost of Goods Sold for the six months ended in Feb. 2024 was £370 Mil. WH Smith's Average Total Inventories for the quarter that ended in Feb. 2024 was £206 Mil. WH Smith's Inventory Turnover for the quarter that ended in Feb. 2024 was 1.80.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. WH Smith's Days Inventory for the six months ended in Feb. 2024 was 101.61.

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. WH Smith's Inventory-to-Revenue for the quarter that ended in Feb. 2024 was 0.22.

WH Smith Inventory Turnover Historical Data

The historical data trend for WH Smith'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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WH Smith Inventory Turnover Chart

WH Smith Annual Data

Trend

Aug14

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

Inventory Turnover

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3.37

2.72

2.51

3.23

3.38

WH Smith Semi-Annual Data
	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23	Feb24
Inventory Turnover	Get a 7-Day Free Trial															1.67	1.70	1.79	1.76	1.80

WH Smith Inventory Turnover Calculation

WH Smith's Inventory Turnover for the fiscal year that ended in Aug. 2023 is calculated as

	Inventory Turnover (A: Aug. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Aug. 2023 )	/ (	(Total Inventories (A: Aug. 2022 )	+	Total Inventories (A: Aug. 2023 ))	/	count )
=	682	/ (	(198	+	205)	/	2 )
=	682	/	201.5
=	3.38

WH Smith's Inventory Turnover for the quarter that ended in Feb. 2024 is calculated as

	Inventory Turnover (Q: Feb. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Feb. 2024 )	/ (	(Total Inventories (Q: Aug. 2023 )	+	Total Inventories (Q: Feb. 2024 ))	/	count )
=	370	/ (	(205	+	207)	/	2 )
=	370	/	206
=	1.80

WH Smith (LSE:SMWH) 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.

WH Smith's Days Inventory for the six months ended in Feb. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Feb. 2024 )	/	Cost of Goods Sold (Q: Feb. 2024 )	*	Days in Period
	=	206	/	370	*	365 / 2
	=	101.61

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.

WH Smith's Inventory to Revenue for the quarter that ended in Feb. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Feb. 2024 )	/	Revenue (Q: Feb. 2024 )
	=	206	/	926
	=	0.22

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.

WH Smith Inventory Turnover Related Terms

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WH Smith (LSE:SMWH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » WH Smith PLC (LSE:SMWH) » Definitions » Inventory Turnover

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WHTPF:USA SMWHl:UK 21Q:Germany

Address

Greenbridge Road, Swindon, Wiltshire, GBR, SN3 3RX

Website

https://www.whsmithplc.co.uk

WH Smith PLC is a U.K. retailer selling a wide range of products. Its two core business segments are travel and high street. WHSmith's travel stores offer products such as food, drink, publications, books, and tech accessories and other products to travelers. This segment operates predominantly in airports, railway stations, hospitals, and workplaces across Europe, Australia, the Middle East, Southeast Asia, and India. The high street segment operates stores in the United Kingdom, predominantly on the U.K. high street. The high street segment sells products into the following categories: stationery, books, newspapers, magazines, and confectionery. WH Smith also has an online retail business that sells a range of books, stationery, magazines, and gifts through its websites.

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