Costa Group Holdings (ASX:CGC) Inventory Turnover : 5.35 (As of Jun. 2023)

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What is Costa Group Holdings 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. Costa Group Holdings's Cost of Goods Sold for the six months ended in Jun. 2023 was A$241 Mil. Costa Group Holdings's Average Total Inventories for the quarter that ended in Jun. 2023 was A$45 Mil. Costa Group Holdings's Inventory Turnover for the quarter that ended in Jun. 2023 was 5.35.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Costa Group Holdings's Days Inventory for the six months ended in Jun. 2023 was 34.11.

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. Costa Group Holdings's Inventory-to-Revenue for the quarter that ended in Jun. 2023 was 0.06.

Costa Group Holdings Inventory Turnover Historical Data

The historical data trend for Costa Group Holdings'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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Costa Group Holdings Inventory Turnover Chart

Costa Group Holdings Annual Data

Trend

Jun16

Jun17

Jun18

Dec19

Dec20

Dec21

Dec22

Inventory Turnover

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7.07

4.86

5.04

4.46

5.81

Costa Group Holdings Semi-Annual Data
	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
Inventory Turnover	Get a 7-Day Free Trial											3.79	3.26	3.12	4.87	5.35

Costa Group Holdings Inventory Turnover Calculation

Costa Group Holdings's Inventory Turnover for the fiscal year that ended in Dec. 2022 is calculated as

	Inventory Turnover (A: Dec. 2022 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2022 )	/ (	(Total Inventories (A: Dec. 2021 )	+	Total Inventories (A: Dec. 2022 ))	/	count )
=	409.841	/ (	(101.081	+	40.045)	/	2 )
=	409.841	/	70.563
=	5.81

Costa Group Holdings's Inventory Turnover for the quarter that ended in Jun. 2023 is calculated as

	Inventory Turnover (Q: Jun. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jun. 2023 )	/ (	(Total Inventories (Q: Dec. 2022 )	+	Total Inventories (Q: Jun. 2023 ))	/	count )
=	241.055	/ (	(40.045	+	50.07)	/	2 )
=	241.055	/	45.0575
=	5.35

Costa Group Holdings (ASX:CGC) 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.

Costa Group Holdings's Days Inventory for the six months ended in Jun. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2023 )	/	Cost of Goods Sold (Q: Jun. 2023 )	*	Days in Period
	=	45.0575	/	241.055	*	365 / 2
	=	34.11

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.

Costa Group Holdings's Inventory to Revenue for the quarter that ended in Jun. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2023 )	/	Revenue (Q: Jun. 2023 )
	=	45.0575	/	755.509
	=	0.06

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.

Costa Group Holdings Inventory Turnover Related Terms

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Costa Group Holdings (ASX:CGC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Costa Group Holdings Ltd (ASX:CGC) » Definitions » Inventory Turnover

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CTTQF:USA

Address

275 Robinsons Road, Unit 1, Ravenhall, VIC, AUS, VIC 3023

Website

https://www.costagroup.com.au

Costa Group is the largest fresh produce company in Australia, with an estimated market share of over 15%, principally supplying fresh fruit and vegetables to the major Australian supermarkets. While supplemented by third-party growers, the firm's products are predominantly sourced from around 7,200 planted hectares of farmland, 40 hectares of tomato glasshouse facilities, and mushroom-growing facilities across Australia. Costa also operates berry farms in Morocco and China as part of its international business.