Inghams Group (ASX:ING) Inventory Turnover : 5.58 (As of Dec. 2023)

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What is Inghams Group 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. Inghams Group's Cost of Goods Sold for the six months ended in Dec. 2023 was A$1,315 Mil. Inghams Group's Average Total Inventories for the quarter that ended in Dec. 2023 was A$235 Mil. Inghams Group's Inventory Turnover for the quarter that ended in Dec. 2023 was 5.58.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Inghams Group's Days Inventory for the six months ended in Dec. 2023 was 32.68.

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. Inghams Group's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.14.

Inghams Group Inventory Turnover Historical Data

The historical data trend for Inghams Group'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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Inghams Group Inventory Turnover Chart

Inghams Group Annual Data

Trend

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Inventory Turnover

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7.38

6.75

8.18

10.61

11.03

Inghams Group Semi-Annual Data
	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Inventory Turnover	Get a 7-Day Free Trial										5.31	4.86	5.29	5.52	5.58

Inghams Group Inventory Turnover Calculation

Inghams Group's Inventory Turnover for the fiscal year that ended in Jun. 2023 is calculated as

	Inventory Turnover (A: Jun. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jun. 2023 )	/ (	(Total Inventories (A: Jun. 2022 )	+	Total Inventories (A: Jun. 2023 ))	/	count )
=	2532.7	/ (	(238.7	+	220.7)	/	2 )
=	2532.7	/	229.7
=	11.03

Inghams Group's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Jun. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	1314.5	/ (	(220.7	+	250.1)	/	2 )
=	1314.5	/	235.4
=	5.58

Inghams Group (ASX:ING) 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.

Inghams Group's Days Inventory for the six months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	235.4	/	1314.5	*	365 / 2
	=	32.68

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.

Inghams Group's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	235.4	/	1642.2
	=	0.14

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.

Inghams Group Inventory Turnover Related Terms

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Inghams Group (ASX:ING) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Inghams Group Ltd (ASX:ING) » Definitions » Inventory Turnover

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IH1:Germany

Address

1 Julius Avenue, Level 4, North Ryde, Sydney, NSW, AUS, 2113

Website

https://www.inghams.com.au

Inghams is the largest vertically integrated poultry producer in Australia and New Zealand. The firm enjoys a number-one position in Australia with approximately 40% market share and a number-two position in New Zealand with around 35% share. Inghams supplies poultry products, notably to major Australian supermarkets Woolworths and Coles, and quick-service restaurants McDonalds and KFC. Sales are heavily skewed toward poultry, which includes the production and sale of chicken and turkey products.