CHS (CHSCM.PFD) Inventory Turnover: 1.80 (As of Feb. 2019)


What is CHS Inventory Turnover?

CHS CHSCM.PFD -0.74% Inventory Turnover is 1.80 as of Feb. 2019. The stock has 1 warning sign 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. CHS's Cost of Goods Sold for the three months ended in Feb. 2019 was $6,056.13 Mil. CHS's Average Total Inventories for the quarter that ended in Feb. 2019 was $3,369.61 Mil. CHS's Inventory Turnover for the quarter that ended in Feb. 2019 was 1.80.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. CHS's Days Inventory for the three months ended in Feb. 2019 was 50.77.

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. CHS's Inventory-to-Revenue for the quarter that ended in Feb. 2019 was 0.52.

CHS  (NAS:CHSCM.PFD) 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.

CHS's Days Inventory for the three months ended in Feb. 2019 is calculated as:

Days Inventory =Average Total Inventories (Q: Feb. 2019 )/Cost of Goods Sold (Q: Feb. 2019 )*Days in Period
=3369.6145/6056.126*365 / 4
=50.77

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.

CHS's Inventory to Revenue for the quarter that ended in Feb. 2019 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Feb. 2019 ) / Revenue (Q: Feb. 2019 )
=3369.6145 / 6483.539
=0.52

* 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.

CHS Inventory Turnover Related Terms

CHS Inventory Turnover Historical Data

* Premium members only.

The historical data trend for CHS'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.

CHS Inventory Turnover Chart

CHS Annual Data
Trend Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.12 12.23 11.70 12.53 11.76

CHS Quarterly Data
May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19
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 2.04 2.65 2.95 2.69 1.80

CHS Inventory Turnover Calculation

CHS's Inventory Turnover for the fiscal year that ended in Aug. 2018 is calculated as

Inventory Turnover (A: Aug. 2018 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Aug. 2018 ) / ((Total Inventories (A: Aug. 2017 ) + Total Inventories (A: Aug. 2018 )) / count )
=31589.887 / ((2601.604 + 2768.649) / 2 )
=31589.887 / 2685.1265
=11.76

CHS's Inventory Turnover for the quarter that ended in Feb. 2019 is calculated as

Inventory Turnover (Q: Feb. 2019 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Feb. 2019 ) / ((Total Inventories (Q: Nov. 2018 ) + Total Inventories (Q: Feb. 2019 )) / count )
=6056.126 / ((3184.449 + 3554.78) / 2 )
=6056.126 / 3369.6145
=1.80

* 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 1.80 mean?
CHS (CHSCM.PFD) has a Inventory Turnover of 1.80 as of Feb. 2019. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on CHS and its competitors.
Is CHS's Inventory Turnover too high?
CHS's current Inventory Turnover is 1.80.
How does CHS's Inventory Turnover compare to RSSFF and NWGFF?
CHS's Inventory Turnover of 1.80 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 CHS and its competitors. CHS's current Inventory Turnover is 1.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CHS stock overvalued right now?
CHS (CHSCM.PFD) has a current Inventory Turnover of 1.80. The current Inventory Turnover is 1.80. 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 CHS (CHSCM.PFD), the current Inventory Turnover is 1.80 as of Feb. 2019. 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.

CHS Business Description

Address 5500 Cenex Drive, Inver Grove Heights, MN, USA, 55077
CHS Inc is an integrated agricultural enterprise, that provides grain, food, and energy resources to businesses and consumers. Its Energy segment produces and provides wholesale distribution of petroleum products and transportation of those products. Its Ag segment, which is the key revenue driver, purchases and processes or resells grains and oilseeds; serves as a wholesaler and retailer of crop inputs; produces and markets ethanol. Its Nitrogen Production segment consists of equity method investment in CF Nitrogen, which entitles the purchase of up to a specified quantity of granular urea and UAN annually from CF Nitrogen. Geographically, the company derives maximum revenue from North America and the rest from South America, Asia Pacific, Europe, Middle East, and Africa (EMEA).