Ramsay Health Care (ASX:RHC) Inventory Turnover: 5.17 (As of Dec. 2025)


ASX:RHC Ramsay Health Care Ltd ASX:RHC
87 GF Score
Price A$43.53
GF Value A$50.75
Valuation Modestly Undervalued
! 9 Warning Signs
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What is Ramsay Health Care Inventory Turnover?

Ramsay Health Care ASX:RHC -1.02% 87 Inventory Turnover is 5.17 as of Dec. 2025. GuruFocus rates ASX:RHC with a GF Score™ of 87/100 and a GF Value™ of A$50.75 (Modestly Undervalued). The stock has 9 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. Ramsay Health Care's Cost of Goods Sold for the six months ended in Dec. 2025 was A$2,115 Mil. Ramsay Health Care's Average Total Inventories for the quarter that ended in Dec. 2025 was A$409 Mil. Ramsay Health Care's Inventory Turnover for the quarter that ended in Dec. 2025 was 5.17.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Ramsay Health Care's Days Inventory for the six months ended in Dec. 2025 was 35.30.

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. Ramsay Health Care's Inventory-to-Revenue for the quarter that ended in Dec. 2025 was 0.04.

Ramsay Health Care  (ASX:RHC) 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.

Ramsay Health Care'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
=409.1/2115.3*365 / 2
=35.30

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.

Ramsay Health Care'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 )
=409.1 / 9340.8
=0.04

* 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.

Ramsay Health Care Inventory Turnover Related Terms

Ramsay Health Care Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Ramsay Health Care'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.

Ramsay Health Care Inventory Turnover Chart

Ramsay Health Care 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 7.33 7.91 8.75 9.67 10.22

Ramsay Health Care 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 4.70 4.98 5.01 5.18 5.17
ASX:RHC
87GF Score
Ramsay Health Care Ltd ASX:RHC
Inventory Turnover is just one metric. See GF Score™, valuation, warning signs, and more.
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Ramsay Health Care Inventory Turnover Calculation

Ramsay Health Care'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 )
=4004.6 / ((379.4 + 404.4) / 2 )
=4004.6 / 391.9
=10.22

Ramsay Health Care'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 )
=2115.3 / ((404.4 + 413.8) / 2 )
=2115.3 / 409.1
=5.17

* 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 5.17 mean?
Ramsay Health Care (ASX:RHC) has a Inventory Turnover of 5.17 as of Dec. 2025. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Ramsay Health Care and its competitors.
Is Ramsay Health Care's Inventory Turnover too high?
Ramsay Health Care's current Inventory Turnover is 5.17. Overall, Ramsay Health Care has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ramsay Health Care's Inventory Turnover compare to HCA and THC?
Ramsay Health Care's Inventory Turnover of 5.17 can be compared against companies in the Healthcare Providers & Services 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 Healthcare Providers & Services company?
A good Inventory Turnover depends on the Healthcare Providers & Services 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 Ramsay Health Care and its competitors. Ramsay Health Care's current Inventory Turnover is 5.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ramsay Health Care stock overvalued right now?
Based on GuruFocus' analysis, Ramsay Health Care (ASX:RHC) is currently considered Modestly Undervalued. The stock's GF Value™ is A$50.75, compared to a current price of A$43.53 — trading 14.2% below its estimated fair value. The current Inventory Turnover is 5.17. Ramsay Health Care's overall GF Score™ is 87/100 with 9 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 Ramsay Health Care (ASX:RHC), the current Inventory Turnover is 5.17 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 Ramsay Health Care (ASX:RHC) Overvalued in 2026?

Based on GuruFocus' analysis, Ramsay Health Care stock appears to be undervalued. The current stock price of A$43.53 is trading 14.2% below its estimated GF Value™ of A$50.75. GuruFocus considers Ramsay Health Care to be Modestly Undervalued.

Key valuation signals for ASX:RHC:

  • Inventory Turnover: 5.17
  • GF Value™: A$50.75 vs. price of A$43.53 (14.2% below fair value)
  • GF Score™: 87/100 with 9 warning signs

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

Ramsay Health Care Business Description

Address 126 Phillip Street, Suite 18.03, Level 18, Deutsche Bank Place, Sydney, NSW, AUS, 2000
Ramsay Health Care is one of the largest private healthcare providers in the world, with more than 500 sites across about eight countries. The key markets in which it operates are Australia, France, the UK, and Sweden. It is the largest private hospital group in each of these markets except for the UK, where it is the largest independent supplier to the NHS. Ramsay Santé, which operates the European regions other than the UK, is a 53%-owned subsidiary of Ramsay Health Care. The company typically earns about two-thirds of consolidated earnings in Australia. Ramsay Health Care undertakes both private and publicly funded healthcare.
87GF Score

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

A$43.53
Price
A$50.75
GF Value