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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. Diageo's Average Total Inventories for the quarter that ended in Dec. 2025 was €9,128 Mil. Diageo's Revenue for the
six
months ended in Dec. 2025 was €8,933 Mil.
Diageo's Inventory-to-Revenue for the quarter that ended in Dec. 2025 was 1.02.
Diageo's Inventory-to-Revenue for the quarter that ended in Dec. 2025
declined
from Jun. 2025 (1.14) to Jun. 2025 (1.02)
A decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:
1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.
Days Inventory indicates the number of days of goods in sales that a company has in the inventory.
Diageo's Days Inventory for the
six
months ended in Dec. 2025 was 478.67.
Inventory Turnover measures how fast the company turns over its inventory within a year.
Diageo's Inventory Turnover for the quarter that ended in Dec. 2025 was 0.38.
An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:
1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.
Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:
1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.
More Related Terms:
1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.
Diageo's Days Inventory for the
six
months ended in Dec. 2025 is calculated as:
* 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.
Diageo Inventory-to-Revenue Related Terms
Diageo Inventory-to-Revenue Historical Data
* Premium members only.
The historical data trend for Diageo's Inventory-to-Revenue 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.
For the Beverages - Wineries & Distilleries subindustry, Diageo's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue 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.
Diageo Inventory-to-Revenue vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's Inventory-to-Revenue distribution charts can be found below:
* The bar in red indicates where Diageo's Inventory-to-Revenue falls into.
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.
Diageo's Inventory-to-Revenue for the fiscal year that ended in Jun. 2025 is calculated as
* 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.
Diageo (FRA:GUI) has a Inventory-to-Revenue of 1.02 as of Dec. 2025. Inventory-to-Sales ratio is the total inventories divided by total sales. View historical data on Diageo and its competitors.
Is Diageo's Inventory-to-Revenue too high?
Diageo's current Inventory-to-Revenue is 1.02. Overall, Diageo has a GF Score™ of 64/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Diageo's Inventory-to-Revenue compare to BF.B?
Diageo's Inventory-to-Revenue of 1.02 can be compared against companies in the Beverages - Alcoholic industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Inventory-to-Revenue for a Beverages - Alcoholic company?
A good Inventory-to-Revenue depends on the Beverages - Alcoholic industry context. However, Inventory-to-Revenue should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Inventory-to-Revenue mean?
A high Inventory-to-Revenue can signal that a stock is expensive relative to its fundamentals. Inventory-to-Sales ratio is the total inventories divided by total sales. View historical data on Diageo and its competitors. Diageo's current Inventory-to-Revenue is 1.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diageo stock overvalued right now?
Based on GuruFocus' analysis, Diageo (FRA:GUI) is currently considered Significantly Undervalued. The stock's GF Value™ is €28.10, compared to a current price of €19.16 — trading 31.8% below its estimated fair value. The current Inventory-to-Revenue is 1.02. Diageo's overall GF Score™ is 64/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Inventory-to-Revenue calculated?
Inventory-to-Revenue is calculated from a company's financial statements. For Diageo (FRA:GUI), the current Inventory-to-Revenue is 1.02 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Diageo (FRA:GUI) Overvalued in 2026?
Based on GuruFocus' analysis, Diageo stock appears to be undervalued.
The current stock price of €19.16 is trading 31.8% below its estimated GF Value™ of €28.10.
GuruFocus considers Diageo to be Significantly Undervalued.
Key valuation signals for FRA:GUI:
Inventory-to-Revenue: 1.02
GF Value™: €28.10 vs. price of €19.16 (31.8% below fair value)
No single metric tells the full story. See the FRA:GUI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formed in 1997 through the merger of Grand Metropolitan and Guinness, Diageo is the largest distiller globally by sales. Diageo acquired some of the Seagram assets in 2001, which gave it brands such as Captain Morgan rum and Crown Royal Canadian whisky. Since then, mergers and acquisitions have mostly been bolt-on in nature, plugging gaps in the company's product and geographic portfolio.
64GF Score
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