Reckitt Benckiser Group (Reckitt Benckiser Group) Inventory Turnover : 1.72 (As of Dec. 2023)

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What is Reckitt Benckiser Group 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. Reckitt Benckiser Group's Cost of Goods Sold for the six months ended in Dec. 2023 was $3,576 Mil. Reckitt Benckiser Group's Average Total Inventories for the quarter that ended in Dec. 2023 was $2,083 Mil. Reckitt Benckiser Group's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.72.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Reckitt Benckiser Group's Days Inventory for the six months ended in Dec. 2023 was 106.33.

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. Reckitt Benckiser Group's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.23.

Reckitt Benckiser Group Inventory Turnover Historical Data

The historical data trend for Reckitt Benckiser Group'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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Reckitt Benckiser Group Inventory Turnover Chart

Reckitt Benckiser Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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3.98

3.87

3.62

3.56

3.45

Reckitt Benckiser Group 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															1.84	1.71	1.76	1.77	1.72

Reckitt Benckiser Group Inventory Turnover Calculation

Reckitt Benckiser Group'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 )
=	7401.265	/ (	(2222.899	+	2072.152)	/	2 )
=	7401.265	/	2147.5255
=	3.45

Reckitt Benckiser Group'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 )
=	3575.949	/ (	(2094.697	+	2072.152)	/	2 )
=	3575.949	/	2083.4245
=	1.72

Reckitt Benckiser Group (OTCPK:RBGPF) 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.

Reckitt Benckiser Group'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
	=	2083.4245	/	3575.949	*	365 / 2
	=	106.33

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.

Reckitt Benckiser Group'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 )
	=	2083.4245	/	9064.557
	=	0.23

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.

Reckitt Benckiser Group Inventory Turnover Related Terms

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Reckitt Benckiser Group (Reckitt Benckiser Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Reckitt Benckiser Group PLC (OTCPK:RBGPF) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

RBGLY:USA RB:Mexico RKTl:UK RKT:UK 3RB:Germany

Address

103-105 Bath Road, Slough, Berkshire, GBR, SL1 3UH

Website

https://www.reckitt.com

Reckitt Benckiser was formed in 1999 through the merger of the British firm Reckitt & Colman and Dutch-based Benckiser. Recently rebranded under the corporate name Reckitt, it sells a portfolio that includes a variety of household and consumer health brands, such as Lysol, Finish, Durex, and Mucinex, many of which hold the number-one or -two positions in their categories globally. Reckitt has repositioned its portfolio and has entered the infant formula market through the acquisition of Mead Johnson in 2017, expanded its consumer health presence by acquiring Schiff Nutrition, K-Y, and Biofreeze, and has exited the food industry. The firm operates in 60 countries and sells products in more than 200, generating around 35% of sales from emerging markets.