Formula Systems (1985) (FRA:FSY) Inventory Turnover : 13.04 (As of Sep. 2023)

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What is Formula Systems (1985) 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. Formula Systems (1985)'s Cost of Goods Sold for the three months ended in Sep. 2023 was €464 Mil. Formula Systems (1985)'s Average Total Inventories for the quarter that ended in Sep. 2023 was €36 Mil. Formula Systems (1985)'s Inventory Turnover for the quarter that ended in Sep. 2023 was 13.04.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Formula Systems (1985)'s Days Inventory for the three months ended in Sep. 2023 was 7.00.

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. Formula Systems (1985)'s Inventory-to-Revenue for the quarter that ended in Sep. 2023 was 0.06.

Formula Systems (1985) Inventory Turnover Historical Data

The historical data trend for Formula Systems (1985)'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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Formula Systems (1985) Inventory Turnover Chart

Formula Systems (1985) Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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211.65

88.90

84.62

70.81

50.55

Formula Systems (1985) Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															13.40	13.71	12.60	13.04	11.98

Formula Systems (1985) Inventory Turnover Calculation

Formula Systems (1985)'s Inventory Turnover for the fiscal year that ended in Dec. 2022 is calculated as

	Inventory Turnover (A: Dec. 2022 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2022 )	/ (	(Total Inventories (A: Dec. 2021 )	+	Total Inventories (A: Dec. 2022 ))	/	count )
=	1840.698	/ (	(18.781	+	33.211)	/	2 )
=	1840.698	/	25.996
=	70.81

Formula Systems (1985)'s Inventory Turnover for the quarter that ended in Sep. 2023 is calculated as

	Inventory Turnover (Q: Sep. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2023 )	/ (	(Total Inventories (Q: Jun. 2023 )	+	Total Inventories (Q: Sep. 2023 ))	/	count )
=	464.023	/ (	(36.342	+	34.815)	/	2 )
=	464.023	/	35.5785
=	13.04

Formula Systems (1985) (FRA:FSY) 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.

Formula Systems (1985)'s Days Inventory for the three months ended in Sep. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2023 )	/	Cost of Goods Sold (Q: Sep. 2023 )	*	Days in Period
	=	35.5785	/	464.023	*	365 / 4
	=	7.00

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.

Formula Systems (1985)'s Inventory to Revenue for the quarter that ended in Sep. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	35.5785	/	613.584
	=	0.06

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.

Formula Systems (1985) Inventory Turnover Related Terms

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Formula Systems (1985) (FRA:FSY) Business Description

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FORTY:USA FORTY:Israel FSY:Germany

Address

Yahadut Canada 1 Street, Or Yehuda, Tel Aviv, ISR, 6037501

Website

https://www.formulasystems.com

Formula Systems (1985) Ltd is a holding company that, through its subsidiaries, provides information technology services. The company organizes itself into three primary segments based on the subsidiary. The Matrix segment, which generates the majority of revenue, provides software development and existing software expansion services. The Sapiens segment provides software development services for the insurance industry. The Magic Software segment provides vendor management systems and workforce management services, which include accounting and finance, human resources, IT technology, and marketing and sales. Michpal; ZAP Group and Others. The majority of the company's revenue comes from Israel.

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