Fortis (TSX:FTS.PR.M.PFD) Inventory Turnover : 1.56 (As of Dec. 2023)

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What is Fortis 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. Fortis's Cost of Goods Sold for the three months ended in Dec. 2023 was C$899.00 Mil. Fortis's Average Total Inventories for the quarter that ended in Dec. 2023 was C$577.00 Mil. Fortis's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.56.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Fortis's Days Inventory for the three months ended in Dec. 2023 was 58.57.

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. Fortis's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.20.

Fortis Inventory Turnover Historical Data

The historical data trend for Fortis'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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Fortis Inventory Turnover Chart

Fortis Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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6.36

6.28

6.56

6.94

6.15

Fortis 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															1.88	2.13	1.43	1.38	1.56

Fortis Inventory Turnover Calculation

Fortis'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 )
=	3771	/ (	(661	+	566)	/	2 )
=	3771	/	613.5
=	6.15

Fortis'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 )
=	899	/ (	(588	+	566)	/	2 )
=	899	/	577
=	1.56

Fortis (TSX:FTS.PR.M.PFD) 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.

Fortis'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
	=	577	/	899	*	365 / 4
	=	58.57

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.

Fortis'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 )
	=	577	/	2885
	=	0.20

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.

Fortis Inventory Turnover Related Terms

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Fortis (TSX:FTS.PR.M.PFD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Fortis Inc (TSX:FTS.PR.M.PFD) » Definitions » Inventory Turnover

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Address

5 Springdale Street, Suite 1100, Fortis Place, St. John’s, NL, CAN, A1E 0E4

Website

https://www.fortisinc.com

Fortis owns and operates eight utility transmission and distribution subsidiaries in Canada and the United States, serving more than 3.4 million electricity and gas customers. The company has smaller stakes in electricity generation and several Caribbean utilities. Subsidiary ITC operates electric transmission in seven U.S. states, with more than 16,000 miles of high-voltage transmission lines in operation.

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