The a2 Milk Co (ASX:A2M) Inventory Turnover: 3.15 (As of Dec. 2025)


ASX:A2M The a2 Milk Co Ltd ASX:A2M
82 GF Score
Price A$7.62
GF Value A$6.63
Valuation Modestly Overvalued
! 3 Warning Signs
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What is The a2 Milk Co Inventory Turnover?

The a2 Milk Co ASX:A2M +2.42% 82 Inventory Turnover is 3.15 as of Dec. 2025. GuruFocus rates ASX:A2M with a GF Score™ of 82/100 and a GF Value™ of A$6.63 (Modestly Overvalued). The stock has 3 warning signs investors should review.

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. The a2 Milk Co's Cost of Goods Sold for the six months ended in Dec. 2025 was A$442 Mil. The a2 Milk Co's Average Total Inventories for the quarter that ended in Dec. 2025 was A$140 Mil. The a2 Milk Co's Inventory Turnover for the quarter that ended in Dec. 2025 was 3.15.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. The a2 Milk Co's Days Inventory for the six months ended in Dec. 2025 was 57.86.

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. The a2 Milk Co's Inventory-to-Revenue for the quarter that ended in Dec. 2025 was 0.16.

The a2 Milk Co  (ASX:A2M) 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.

The a2 Milk Co's Days Inventory for the six months ended in Dec. 2025 is calculated as:

Days Inventory =Average Total Inventories (Q: Dec. 2025 )/Cost of Goods Sold (Q: Dec. 2025 )*Days in Period
=139.988/441.533*365 / 2
=57.86

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.

The a2 Milk Co's Inventory to Revenue for the quarter that ended in Dec. 2025 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=139.988 / 864.467
=0.16

* 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.

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.

The a2 Milk Co Inventory Turnover Related Terms

The a2 Milk Co Inventory Turnover Historical Data

* Premium members only.

The historical data trend for The a2 Milk Co'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.

The a2 Milk Co Inventory Turnover Chart

The a2 Milk Co Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.34 6.11 5.13 4.89 6.44

The a2 Milk Co Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Inventory Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.24 2.51 2.62 3.24 3.15
ASX:A2M
82GF Score
The a2 Milk Co Ltd ASX:A2M
Inventory Turnover is just one metric. See GF Score™, valuation, warning signs, and more.
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The a2 Milk Co Inventory Turnover Calculation

The a2 Milk Co's Inventory Turnover for the fiscal year that ended in Jun. 2025 is calculated as

Inventory Turnover (A: Jun. 2025 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Jun. 2025 ) / ((Total Inventories (A: Jun. 2024 ) + Total Inventories (A: Jun. 2025 )) / count )
=949.333 / ((166.083 + 128.954) / 2 )
=949.333 / 147.5185
=6.44

The a2 Milk Co's Inventory Turnover for the quarter that ended in Dec. 2025 is calculated as

Inventory Turnover (Q: Dec. 2025 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Dec. 2025 ) / ((Total Inventories (Q: Jun. 2025 ) + Total Inventories (Q: Dec. 2025 )) / count )
=441.533 / ((128.954 + 151.022) / 2 )
=441.533 / 139.988
=3.15

* 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.

Frequently Asked Questions Learn more about Inventory Turnover →
What does a Inventory Turnover of 3.15 mean?
The a2 Milk Co (ASX:A2M) has a Inventory Turnover of 3.15 as of Dec. 2025. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on The a2 Milk Co and its competitors.
Is The a2 Milk Co's Inventory Turnover too high?
The a2 Milk Co's current Inventory Turnover is 3.15. Overall, The a2 Milk Co has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The a2 Milk Co's Inventory Turnover compare to KHC and GIS?
The a2 Milk Co's Inventory Turnover of 3.15 can be compared against companies in the Consumer Packaged Goods industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Inventory Turnover for a Consumer Packaged Goods company?
A good Inventory Turnover depends on the Consumer Packaged Goods industry context. However, Inventory Turnover 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 Turnover mean?
A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on The a2 Milk Co and its competitors. The a2 Milk Co's current Inventory Turnover is 3.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The a2 Milk Co stock overvalued right now?
Based on GuruFocus' analysis, The a2 Milk Co (ASX:A2M) is currently considered Modestly Overvalued. The stock's GF Value™ is A$6.63, compared to a current price of A$7.62 — trading 14.9% above its estimated fair value. The current Inventory Turnover is 3.15. The a2 Milk Co's overall GF Score™ is 82/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Inventory Turnover calculated?
Inventory Turnover is calculated from a company's financial statements. For The a2 Milk Co (ASX:A2M), the current Inventory Turnover is 3.15 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 The a2 Milk Co (ASX:A2M) Overvalued in 2026?

Based on GuruFocus' analysis, The a2 Milk Co stock appears to be overvalued. The current stock price of A$7.62 is trading 14.9% above its estimated GF Value™ of A$6.63. GuruFocus considers The a2 Milk Co to be Modestly Overvalued.

Key valuation signals for ASX:A2M:

  • Inventory Turnover: 3.15
  • GF Value™: A$6.63 vs. price of A$7.62 (14.9% above fair value)
  • GF Score™: 82/100 with 3 warning signs

No single metric tells the full story. See the ASX:A2M stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

The a2 Milk Co Business Description

Address 51 Shortland Street, Level 10, Auckland, NTL, NZL, 1010
A2 Milk is a New Zealand licensor and marketer of fresh milk, infant formula, and other dairy products that lack the A1 beta-casein protein. The firm was founded in 2000 by Corran McLachlan, who developed a genetic test to determine which proteins a cow produces in its milk, and business partner Howard Paterson. The company has been through a tumultuous history of receivership, legal battles, and strategic shifts, but emerged in its current structure in 2006 and listed publicly in March 2013.
82GF Score

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Inventory Turnover is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$7.62
Price
A$6.63
GF Value