Australian Agricultural Co (ASX:AAC) Inventory Turnover : 0.23 (As of Sep. 2024)

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What is Australian Agricultural Co 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. Australian Agricultural Co's Cost of Goods Sold for the six months ended in Sep. 2024 was A$44.8 Mil. Australian Agricultural Co's Average Total Inventories for the quarter that ended in Sep. 2024 was A$193.3 Mil. Australian Agricultural Co's Inventory Turnover for the quarter that ended in Sep. 2024 was 0.23.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Australian Agricultural Co's Days Inventory for the six months ended in Sep. 2024 was 786.89.

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. Australian Agricultural Co's Inventory-to-Revenue for the quarter that ended in Sep. 2024 was 0.99.

Australian Agricultural Co Inventory Turnover Historical Data

The historical data trend for Australian Agricultural 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.

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Australian Agricultural Co Inventory Turnover Chart

Australian Agricultural Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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0.69

0.32

-0.53

4.36

7.83

Australian Agricultural Co Semi-Annual Data
	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
Inventory Turnover	Get a 7-Day Free Trial															0.02	0.49	1.11	0.25	0.23

Australian Agricultural Co Inventory Turnover Calculation

Australian Agricultural Co's Inventory Turnover for the fiscal year that ended in Mar. 2024 is calculated as

	Inventory Turnover (A: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2024 )	/ (	(Total Inventories (A: Mar. 2023 )	+	Total Inventories (A: Mar. 2024 ))	/	count )
=	267.106	/ (	(35.919	+	32.338)	/	2 )
=	267.106	/	34.1285
=	7.83

Australian Agricultural Co's Inventory Turnover for the quarter that ended in Sep. 2024 is calculated as

	Inventory Turnover (Q: Sep. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2024 )	/ (	(Total Inventories (Q: Mar. 2024 )	+	Total Inventories (Q: Sep. 2024 ))	/	count )
=	44.831	/ (	(32.338	+	354.262)	/	2 )
=	44.831	/	193.3
=	0.23

Australian Agricultural Co (ASX:AAC) 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.

Australian Agricultural Co's Days Inventory for the six months ended in Sep. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2024 )	/	Cost of Goods Sold (Q: Sep. 2024 )	*	Days in Period
	=	193.3	/	44.831	*	365 / 2
	=	786.89

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.

Australian Agricultural Co's Inventory to Revenue for the quarter that ended in Sep. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2024 )	/	Revenue (Q: Sep. 2024 )
	=	193.3	/	195.569
	=	0.99

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.

Australian Agricultural Co Inventory Turnover Related Terms

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Australian Agricultural Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Australian Agricultural Co Ltd (ASX:AAC) » Definitions » Inventory Turnover

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Address

76 Skyring Terrace, Level 1, Tower A, Gasworks Plaza, Newstead, Brisbane, QLD, AUS, 4006

Website

https://www.aaco.com.au

Australian Agricultural Co Ltd raises cattle in Australia to process and export all over the world. It specializes in grass-fed beef, grain-fed beef, and Japanese-style beef. The company invests in research and technologies to ensure high quality and enhance productivity. The technologies may focus on performance evaluations, feed efficiency, or disease testing. More opportunities for gathering data exist because the cattle are owned throughout the entire supply chain. The company's processing facility works to get the beef out on a timely basis and will turn to third parties in times of shortage. The company distributes the beef by tailoring its route-to-market model to capitalize on regional opportunities.