Diageo (FRA:GUI) Inventory Turnover: 0.38 (As of Dec. 2025)


FRA:GUI Diageo PLC FRA:GUI
67 GF Score
Price €18.19
GF Value €27.76
Valuation Significantly Undervalued
! 5 Warning Signs
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What is Diageo Inventory Turnover?

Diageo FRA:GUI +1.59% 67 Inventory Turnover is 0.38 as of Dec. 2025. GuruFocus rates FRA:GUI with a GF Score™ of 67/100 and a GF Value™ of €27.76 (Significantly Undervalued). The stock has 5 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. Diageo's Cost of Goods Sold for the six months ended in Dec. 2025 was €3,480 Mil. Diageo's Average Total Inventories for the quarter that ended in Dec. 2025 was €9,128 Mil. Diageo's Inventory Turnover for the quarter that ended in Dec. 2025 was 0.38.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Diageo's Days Inventory for the six months ended in Dec. 2025 was 478.67.

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. Diageo's Inventory-to-Revenue for the quarter that ended in Dec. 2025 was 1.02.

Diageo  (FRA:GUI) 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.

Diageo'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
=9127.655/3480.05*365 / 2
=478.67

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.

Diageo'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 )
=9127.655 / 8932.84
=1.02

* 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.

Diageo Inventory Turnover Related Terms

Diageo Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Diageo'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.

Diageo Inventory Turnover Chart

Diageo 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 0.87 1.00 0.90 0.84 0.77

Diageo 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 0.43 0.39 0.43 0.37 0.38
FRA:GUI
67GF Score
Diageo PLC FRA:GUI
Inventory Turnover is just one metric. See GF Score™, valuation, warning signs, and more.
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Diageo Inventory Turnover Calculation

Diageo'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 )
=6998.424 / ((9029.88 + 9240.486) / 2 )
=6998.424 / 9135.183
=0.77

Diageo'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 )
=3480.05 / ((9240.486 + 9014.824) / 2 )
=3480.05 / 9127.655
=0.38

* 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 0.38 mean?
Diageo (FRA:GUI) has a Inventory Turnover of 0.38 as of Dec. 2025. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Diageo and its competitors.
Is Diageo's Inventory Turnover too high?
Diageo's current Inventory Turnover is 0.38. Overall, Diageo has a GF Score™ of 67/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Diageo's Inventory Turnover compare to BF.B?
Diageo's Inventory Turnover of 0.38 can be compared against companies in the Beverages - Alcoholic 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 Beverages - Alcoholic company?
A good Inventory Turnover depends on the Beverages - Alcoholic 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 Diageo and its competitors. Diageo's current Inventory Turnover is 0.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diageo stock overvalued right now?
Based on GuruFocus' analysis, Diageo (FRA:GUI) is currently considered Significantly Undervalued. The stock's GF Value™ is €27.76, compared to a current price of €18.19 — trading 34.5% below its estimated fair value. The current Inventory Turnover is 0.38. Diageo's overall GF Score™ is 67/100 with 5 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 Diageo (FRA:GUI), the current Inventory Turnover is 0.38 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 Diageo (FRA:GUI) Overvalued in 2026?

Based on GuruFocus' analysis, Diageo stock appears to be undervalued. The current stock price of €18.19 is trading 34.5% below its estimated GF Value™ of €27.76. GuruFocus considers Diageo to be Significantly Undervalued.

Key valuation signals for FRA:GUI:

  • Inventory Turnover: 0.38
  • GF Value™: €27.76 vs. price of €18.19 (34.5% below fair value)
  • GF Score™: 67/100 with 5 warning signs

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

Diageo Business Description

Address 16 Great Marlborough Street, London, GBR, W1F 7HS
Formed in 1997 through the merger of Grand Metropolitan and Guinness, Diageo is the largest distiller globally by sales. Diageo acquired some of the Seagram assets in 2001, which gave it brands such as Captain Morgan rum and Crown Royal Canadian whisky. Since then, mergers and acquisitions have mostly been bolt-on in nature, plugging gaps in the company's product and geographic portfolio.
67GF Score

Get the complete analysis for FRA:GUI

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

€18.19
Price
€27.76
GF Value