Fairway Group Holdings (FRA:FGWA) Inventory Turnover: 4.47 (As of Dec. 2015)


What is Fairway Group Holdings Inventory Turnover?

Fairway Group Holdings FRA:FGWA -96.67% Inventory Turnover is 4.47 as of Dec. 2015. 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. Fairway Group Holdings's Cost of Goods Sold for the three months ended in Dec. 2015 was €121.2 Mil. Fairway Group Holdings's Average Total Inventories for the quarter that ended in Dec. 2015 was €27.1 Mil. Fairway Group Holdings's Inventory Turnover for the quarter that ended in Dec. 2015 was 4.47.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Fairway Group Holdings's Days Inventory for the three months ended in Dec. 2015 was 20.43.

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. Fairway Group Holdings's Inventory-to-Revenue for the quarter that ended in Dec. 2015 was 0.15.

Fairway Group Holdings  (FRA:FGWA) 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.

Fairway Group Holdings's Days Inventory for the three months ended in Dec. 2015 is calculated as:

Days Inventory =Average Total Inventories (Q: Dec. 2015 )/Cost of Goods Sold (Q: Dec. 2015 )*Days in Period
=27.138/121.182*365 / 4
=20.43

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.

Fairway Group Holdings's Inventory to Revenue for the quarter that ended in Dec. 2015 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Dec. 2015 ) / Revenue (Q: Dec. 2015 )
=27.138 / 175.965
=0.15

* 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.

Fairway Group Holdings Inventory Turnover Related Terms

Fairway Group Holdings Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Fairway 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.

Fairway Group Holdings Inventory Turnover Chart

Fairway Group Holdings Annual Data
Trend Mar10 Mar11 Mar12 Mar13 Mar14 Mar15
Inventory Turnover
Get a 7-Day Free Trial 0.00 18.47 20.09 19.25 21.44

Fairway Group Holdings Quarterly Data
Mar10 Mar11 Jun11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15
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 4.78 4.78 4.41 4.24 4.47

Fairway Group Holdings Inventory Turnover Calculation

Fairway Group Holdings's Inventory Turnover for the fiscal year that ended in Mar. 2015 is calculated as

Inventory Turnover (A: Mar. 2015 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Mar. 2015 ) / ((Total Inventories (A: Mar. 2014 ) + Total Inventories (A: Mar. 2015 )) / count )
=506.231 / ((20.288 + 26.935) / 2 )
=506.231 / 23.6115
=21.44

Fairway Group Holdings's Inventory Turnover for the quarter that ended in Dec. 2015 is calculated as

Inventory Turnover (Q: Dec. 2015 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Dec. 2015 ) / ((Total Inventories (Q: Sep. 2015 ) + Total Inventories (Q: Dec. 2015 )) / count )
=121.182 / ((25.41 + 28.866) / 2 )
=121.182 / 27.138
=4.47

* 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 4.47 mean?
Fairway Group Holdings (FRA:FGWA) has a Inventory Turnover of 4.47 as of Dec. 2015. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Fairway Group Holdings and its competitors.
Is Fairway Group Holdings' Inventory Turnover too high?
Fairway Group Holdings' current Inventory Turnover is 4.47.
How does Fairway Group Holdings' Inventory Turnover compare to IFMK?
Fairway Group Holdings' Inventory Turnover of 4.47 can be compared against companies in the Retail - Defensive 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 Retail - Defensive company?
A good Inventory Turnover depends on the Retail - Defensive 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 Fairway Group Holdings and its competitors. Fairway Group Holdings's current Inventory Turnover is 4.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fairway Group Holdings stock overvalued right now?
Fairway Group Holdings (FRA:FGWA) has a current Inventory Turnover of 4.47. The current Inventory Turnover is 4.47. 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 Fairway Group Holdings (FRA:FGWA), the current Inventory Turnover is 4.47 as of Dec. 2015. 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.

Fairway Group Holdings Business Description

Fairway Group Holdings Corp along with its subsidiaries operates in the retail food industry. The company sells fresh, natural and organic products, prepared foods and hard to find specialty and gourmet offerings, along with a full assortment of conventional groceries. Its perishable product categories, which include producing, natural and organic, deli, specialty, cheese, butcher, seafood, bakery, coffee and kosher foods. The non-perishable product categories consist of conventional groceries as well as specialty foods.