Tesco (TSCDY) Inventory Turnover : 11.53 (As of Feb. 2024)

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What is Tesco 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. Tesco's Cost of Goods Sold for the six months ended in Feb. 2024 was $40,087 Mil. Tesco's Average Total Inventories for the quarter that ended in Feb. 2024 was $3,478 Mil. Tesco's Inventory Turnover for the quarter that ended in Feb. 2024 was 11.53.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Tesco's Days Inventory for the six months ended in Feb. 2024 was 15.83.

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. Tesco's Inventory-to-Revenue for the quarter that ended in Feb. 2024 was 0.08.

Tesco Inventory Turnover Historical Data

The historical data trend for Tesco'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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Tesco Inventory Turnover Chart

Tesco Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

Inventory Turnover

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21.33

24.93

25.43

24.21

25.15

Tesco 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															12.48	11.81	12.32	12.05	11.53

Tesco Inventory Turnover Calculation

Tesco's Inventory Turnover for the fiscal year that ended in Feb. 2024 is calculated as

	Inventory Turnover (A: Feb. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Feb. 2024 )	/ (	(Total Inventories (A: Feb. 2023 )	+	Total Inventories (A: Feb. 2024 ))	/	count )
=	79972.222	/ (	(3031.401	+	3327.02)	/	2 )
=	79972.222	/	3179.2105
=	25.15

Tesco'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 )
=	40087.121	/ (	(3628.971	+	3327.02)	/	2 )
=	40087.121	/	3477.9955
=	11.53

Tesco (OTCPK:TSCDY) 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.

Tesco'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
	=	3477.9955	/	40087.121	*	365 / 2
	=	15.83

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.

Tesco'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 )
	=	3477.9955	/	42977.273
	=	0.08

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.

Tesco Inventory Turnover Related Terms

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Tesco (TSCDY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Tesco PLC (OTCPK:TSCDY) » Definitions » Inventory Turnover

Comparable Companies

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TSCDF:USA TSCOl:UK TSCO:UK TCO0:Germany TCO0:Germany TCO0:Germany TCO0:Germany

Address

Kestrel Way, Tesco House, Shire Park, Welwyn Garden, GBR, AL7 1GA

Website

https://www.tescoplc.com

Tesco is one of the largest food retailers in the world, operating thousands of stores in the United Kingdom, Ireland, and Europe. According to Kantar, Tesco is the market leader in the U.K. with a share of more than 27%, roughly double that of Asda or Sainsbury's. Tesco operates a core supermarket business in addition to convenience and neighborhood outlets. With a 35% digital market share in the U.K., the company holds a dominant position online. Tesco gained exposure to the cash-and-carry and out-of-home delivering industries with the landmark GBP 4 billion acquisition of Booker in 2018.