Fortum Oyj (FRA:FOT) Inventory Turnover : 2.72 (As of Mar. 2024)

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What is Fortum Oyj 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. Fortum Oyj's Cost of Goods Sold for the three months ended in Mar. 2024 was €1,167 Mil. Fortum Oyj's Average Total Inventories for the quarter that ended in Mar. 2024 was €429 Mil. Fortum Oyj's Inventory Turnover for the quarter that ended in Mar. 2024 was 2.72.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Fortum Oyj's Days Inventory for the three months ended in Mar. 2024 was 33.51.

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. Fortum Oyj's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.21.

Fortum Oyj Inventory Turnover Historical Data

The historical data trend for Fortum Oyj'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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Fortum Oyj Inventory Turnover Chart

Fortum Oyj Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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11.75

40.90

1.68

3.62

8.55

Fortum Oyj Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															2.76	2.08	2.07	3.14	2.72

Fortum Oyj Inventory Turnover Calculation

Fortum Oyj's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	3919	/ (	(465	+	452)	/	2 )
=	3919	/	458.5
=	8.55

Fortum Oyj's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	1167	/ (	(452	+	405)	/	2 )
=	1167	/	428.5
=	2.72

Fortum Oyj (FRA:FOT) 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.

Fortum Oyj's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	428.5	/	1167	*	365 / 4
	=	33.51

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.

Fortum Oyj's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	428.5	/	2015
	=	0.21

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.

Fortum Oyj Inventory Turnover Related Terms

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Fortum Oyj (FRA:FOT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Fortum Oyj (FRA:FOT) » Definitions » Inventory Turnover

Traded in Other Exchanges

FOJCY:USA FOJCF:USA FORTUM:Mexico 1FORT:Italy FORTMh:UK 0HAH:UK FORTUM:Finland FOT0:Germany

Address

Keilalahdentie 2-4, CD Building, P.O. Box 100, Espoo, FIN, FI-00048

Website

https://www.fortum.com

Fortum Oyj is a Finnish energy company that operates power plants, which use renewable energy sources (hydro, nuclear, and solar power) to sell electricity, heat, cooling, and power products and services. The company mainly operates in Nordic and Baltic countries, Russia, Poland, and India. Its main divisions of the company are generation (large-scale power production), city solutions (sustainable energy solutions), Russia (all Russian operations), technology and new ventures (research and development and in-house incubator for startups), mergers and acquisitions, and solar and wind development. The company's operating segments are Generation, City Solutions, Consumer Solutions, Russia, and Other.

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