Next (FRA:NXG) Inventory Turnover : 1.98 (As of Jul. 2024)

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What is Next 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. Next's Cost of Goods Sold for the six months ended in Jul. 2024 was €1,945 Mil. Next's Average Total Inventories for the quarter that ended in Jul. 2024 was €984 Mil. Next's Inventory Turnover for the quarter that ended in Jul. 2024 was 1.98.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Next's Days Inventory for the six months ended in Jul. 2024 was 92.35.

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. Next's Inventory-to-Revenue for the quarter that ended in Jul. 2024 was 0.29.

Next Inventory Turnover Historical Data

The historical data trend for Next'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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Next Inventory Turnover Chart

Next Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Inventory Turnover

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5.20

4.19

4.68

4.30

4.34

Next Semi-Annual Data
	Jan15	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23	Jan24	Jul24
Inventory Turnover	Get a 7-Day Free Trial															1.97	2.02	2.13	2.28	1.98

Next Inventory Turnover Calculation

Next's Inventory Turnover for the fiscal year that ended in Jan. 2024 is calculated as

	Inventory Turnover (A: Jan. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jan. 2024 )	/ (	(Total Inventories (A: Jan. 2023 )	+	Total Inventories (A: Jan. 2024 ))	/	count )
=	3581.6	/ (	(752.168	+	897.004)	/	2 )
=	3581.6	/	824.586
=	4.34

Next's Inventory Turnover for the quarter that ended in Jul. 2024 is calculated as

	Inventory Turnover (Q: Jul. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jul. 2024 )	/ (	(Total Inventories (Q: Jan. 2024 )	+	Total Inventories (Q: Jul. 2024 ))	/	count )
=	1944.506	/ (	(897.004	+	1070.92)	/	2 )
=	1944.506	/	983.962
=	1.98

Next (FRA:NXG) 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.

Next's Days Inventory for the six months ended in Jul. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jul. 2024 )	/	Cost of Goods Sold (Q: Jul. 2024 )	*	Days in Period
	=	983.962	/	1944.506	*	365 / 2
	=	92.35

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.

Next's Inventory to Revenue for the quarter that ended in Jul. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jul. 2024 )	/	Revenue (Q: Jul. 2024 )
	=	983.962	/	3393.838
	=	0.29

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.

Next Inventory Turnover Related Terms

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Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Next PLC (FRA:NXG) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

NXGPY:USA NXGPF:USA NXTl:UK NXT:UK

Address

Desford Road, Enderby, Leicester, GBR, LE19 4AT

Website

https://www.nextplc.co.uk

Next PLC is a retailer that sells clothing, footwear, accessories, and home products. Majority of the company's offerings consist of its own Next-branded products. Maximum of the company's remaining sales are through retail stores outside of the United Kingdom that it franchises. Its segments include NEXT Online, NEXT Finance and NEXT Retail. Majority of the company's revenue comes from customers in the United Kingdom. It also has its presence in Rest of Europe, Middle East, Asia and Rest of the world.