Fonterra Co-operative Group (NZSE:FCG) Days Inventory : 105.94 (As of Jul. 2023)

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What is Fonterra Co-operative Group Days Inventory?

Days Inventory is also known as Days Sales of Inventory (DSI). Fonterra Co-operative Group's Average Total Inventories for the six months ended in Jul. 2023 was NZ$5,595 Mil. Fonterra Co-operative Group's Cost of Goods Sold for the six months ended in Jul. 2023 was NZ$9,638 Mil. Hence, Fonterra Co-operative Group's Days Inventory for the six months ended in Jul. 2023 was 105.94.

The historical rank and industry rank for Fonterra Co-operative Group's Days Inventory or its related term are showing as below:

NZSE:FCG' s Days Inventory Range Over the Past 10 Years
Min: 57.08 Med: 70.59 Max: 99.76
Current: 99.76

During the past 13 years, Fonterra Co-operative Group's highest Days Inventory was 99.76. The lowest was 57.08. And the median was 70.59.

NZSE:FCG's Days Inventory is ranked worse than
59.47% of 1789 companies
in the Consumer Packaged Goods industry
Industry Median: 83.4 vs NZSE:FCG: 99.76

Fonterra Co-operative Group's Days Inventory declined from Jul. 2022 (114.59) to Jul. 2023 (105.94).

Inventory Turnover measures how fast the company turns over its inventory within a year. Fonterra Co-operative Group's Inventory Turnover for the six months ended in Jul. 2023 was 1.72.

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. Fonterra Co-operative Group's Inventory-to-Revenue for the six months ended in Jul. 2023 was 0.46.

Fonterra Co-operative Group Days Inventory Historical Data

The historical data trend for Fonterra Co-operative Group's Days Inventory 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.

* Premium members only.

Fonterra Co-operative Group Days Inventory Chart

Fonterra Co-operative Group Annual Data

Trend

Jul14

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

Days Inventory

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67.76

68.18

73.02

87.64

86.96

Fonterra Co-operative Group Semi-Annual Data
	Jan14	Jul14	Jan15	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23
Days Inventory	Get a 7-Day Free Trial															91.51	115.52	114.59	106.37	105.94

Competitive Comparison of Fonterra Co-operative Group's Days Inventory

For the Packaged Foods subindustry, Fonterra Co-operative Group's Days Inventory, along with its competitors' market caps and Days Inventory data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Fonterra Co-operative Group's Days Inventory Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Fonterra Co-operative Group's Days Inventory distribution charts can be found below:

* The bar in red indicates where Fonterra Co-operative Group's Days Inventory falls into.

Fonterra Co-operative Group Days Inventory Calculation

Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Fonterra Co-operative Group's Days Inventory for the fiscal year that ended in Jul. 2023 is calculated as

	Days Inventory (A: Jul. 2023 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (A: Jul. 2022 )	+	Total Inventories (A: Jul. 2023 ))	/	count )	/	Cost of Goods Sold (A: Jul. 2023 )	*	Days in Period
=	( (5148	+	4346)	/	2 )	/	19925	*	365
=	4747					/	19925	*	365
=	86.96

Fonterra Co-operative Group's Days Inventory for the quarter that ended in Jul. 2023 is calculated as:

	Days Inventory (Q: Jul. 2023 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (Q: Jan. 2023 )	+	Total Inventories (Q: Jul. 2023 ))	/	count )	/	Cost of Goods Sold (Q: Jul. 2023 )	*	Days in Period
=	( (6844	+	4346)	/	2 )	/	9638	*	365 / 2
=	5595					/	9638	*	365 / 2
=	105.94

Fonterra Co-operative Group (NZSE:FCG) Days Inventory Explanation

Days Inventory indicates the liquidity of the inventory. Generally, a lower Days Inventory is preferred as it indicates a shorter duration to clear off the inventory. An increase of the ratio may indicate the company's sales slowed. Similar ratios related to Days Inventory are:

1. Inventory Turnover measures how fast the company turns over its inventory within a year.

Fonterra Co-operative Group's Inventory Turnover for the six months ended in Jul. 2023 is calculated as

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	9638	/	5595
	=	1.72

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.

Fonterra Co-operative Group's Inventory to Revenue for the six months ended in Jul. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories	/	Revenue
	=	5595	/	12247
	=	0.46

Be Aware

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.

Fonterra Co-operative Group Days Inventory Related Terms

Thank you for viewing the detailed overview of Fonterra Co-operative Group's Days Inventory provided by GuruFocus.com. Please click on the following links to see related term pages.

Fonterra Co-operative Group (NZSE:FCG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Fonterra Co-operative Group Ltd (NZSE:FCG) » Definitions » Days Inventory

Comparable Companies

Traded in Other Exchanges

N/A

Address

109 Fanshawe Street, Auckland Central, Auckland, NZL, 1010

Website

https://www.fonterra.com

Fonterra Co-operative Group Ltd operates predominantly in the international dairy industry. The company is involved in the collection, manufacture, and sale of milk and milk-derived products through its ingredients, Consumer and Foodservice channels. The company's reportable segments are Global Markets, Greater China, and Core Operations and the majority of the revenue is generated from its core operations segment. Its primary geographic markets are China, the Rest of Asia, Australia, New Zealand, the United States, Latin America, and the Rest of the world.