Nomad Foods (Nomad Foods) Inventory Turnover : 1.21 (As of Dec. 2023)

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What is Nomad Foods 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. Nomad Foods's Cost of Goods Sold for the three months ended in Dec. 2023 was $603 Mil. Nomad Foods's Average Total Inventories for the quarter that ended in Dec. 2023 was $500 Mil. Nomad Foods's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.21.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Nomad Foods's Days Inventory for the three months ended in Dec. 2023 was 75.57.

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. Nomad Foods's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.60.

Nomad Foods Inventory Turnover Historical Data

The historical data trend for Nomad Foods'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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Nomad Foods Inventory Turnover Chart

Nomad Foods Annual Data

Trend

Dec14

Mar15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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4.83

5.48

4.77

4.75

4.91

Nomad Foods Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															1.20	1.17	1.10	1.12	1.21

Nomad Foods Inventory Turnover Calculation

Nomad Foods'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 )
=	2383.642	/ (	(484.216	+	486.805)	/	2 )
=	2383.642	/	485.5105
=	4.91

Nomad Foods'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 )
=	603.163	/ (	(512.273	+	486.805)	/	2 )
=	603.163	/	499.539
=	1.21

Nomad Foods (NYSE:NOMD) 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.

Nomad Foods'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
	=	499.539	/	603.163	*	365 / 4
	=	75.57

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.

Nomad Foods'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 )
	=	499.539	/	829.662
	=	0.60

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.

Nomad Foods Inventory Turnover Related Terms

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Nomad Foods (Nomad Foods) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Nomad Foods Ltd (NYSE:NOMD) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

NOMD:Mexico 0NH:Germany

Address

No. 1 New Square, Bedfont Lakes Business Park, Feltham, Middlesex, GBR, TW14 8HA

Website

https://www.nomadfoods.com

Nomad Foods Ltd is a packaged foods company that is involved in the business of manufacturing and distribution of branded frozen foods in Western Europe. The company manufactures and markets frozen food products such as fish, vegetables, poultry, and ready meals. It sells its products primarily through large grocery retailers under the brand Birds Eye in the United Kingdom and Ireland, Findus in Italy, France, Spain, and Scandinavia, and Iglo in Germany and other continental markets. The company operates through a single segment being Frozen. The majority of the revenue is generated from the United Kingdom.