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# Nomad Foods Inventory Turnover

: 1.10 (As of Jun. 2019)
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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. Nomad Foods's Cost of Goods Sold for the three months ended in Jun. 2019 was \$427 Mil. Nomad Foods's Total Inventories for the quarter that ended in Jun. 2019 was \$387 Mil. Nomad Foods's inventory turnover for the quarter that ended in Jun. 2019 was 1.10.

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 Jun. 2019 was 82.69.

Total Inventories can be measured by Days Sales of Inventory (DSI). Nomad Foods's days sales of inventory (DSI) for the three months ended in Jun. 2019 was 58.05.

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 Jun. 2019 was 0.64.

## Nomad Foods Inventory Turnover Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

 Nomad Foods Annual Data Mar15 Dec16 Dec17 Dec18 Inventory Turnover 0.00 8.35 4.55 4.59

## Nomad Foods Inventory Turnover Calculation

Nomad Foods's Inventory Turnover for the fiscal year that ended in Dec. 2018 is calculated as

 Inventory Turnover (A: Dec. 2018 ) = Cost of Goods Sold / Total Inventories = Cost of Goods Sold (A: Dec. 2018 ) / ( (Total Inventories (A: Dec. 2017 ) + Total Inventories (A: Dec. 2018 )) / 2 ) = 1728.44141069 / ( (363.195266272 + 389.647326507) / 2 ) = 1728.44141069 / 376.42129639 = 4.59

Nomad Foods's Inventory Turnover for the quarter that ended in Jun. 2019 is calculated as

 Inventory Turnover (Q: Jun. 2019 ) = Cost of Goods Sold / Total Inventories = Cost of Goods Sold (Q: Jun. 2019 ) / ( (Total Inventories (Q: Mar. 2019 ) + Total Inventories (Q: Jun. 2019 )) / 2 ) = 426.553672316 / ( (383.615819209 + 389.491525424) / 2 ) = 426.553672316 / 386.553672316 = 1.10

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

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 Jun. 2019 is calculated as:

 Days Inventory = Total Inventories (Q: Jun. 2019 ) / Cost of Goods Sold (Q: Jun. 2019 ) * Days in Period = 386.553672316 / 426.553672316 * 365 / 4 = 82.69

2. Total Inventories can be measured by Days Sales of Inventory (DSI).

Nomad Foods's Days Sales of Inventory for the three months ended in Jun. 2019 is calculated as:

 Days Sales of Inventory (DSI) = Total Inventories (Q: Jun. 2019 ) / Revenue (Q: Jun. 2019 ) * Days in Period = 386.553672316 / 607.683615819 * 365 / 4 = 58.05

3. 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 Jun. 2019 is calculated as

 Inventory-to-Revenue = Total Inventories (Q: Jun. 2019 ) / Revenue (Q: Jun. 2019 ) = 386.553672316 / 607.683615819 = 0.64

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

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.