Vertu Motors (FRA:V2N) Inventory Turnover : 2.82 (As of Feb. 2024)

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What is Vertu Motors 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. Vertu Motors's Cost of Goods Sold for the six months ended in Feb. 2024 was €2,397 Mil. Vertu Motors's Average Total Inventories for the quarter that ended in Feb. 2024 was €851 Mil. Vertu Motors's Inventory Turnover for the quarter that ended in Feb. 2024 was 2.82.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Vertu Motors's Days Inventory for the six months ended in Feb. 2024 was 64.75.

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. Vertu Motors's Inventory-to-Revenue for the quarter that ended in Feb. 2024 was 0.32.

Vertu Motors Inventory Turnover Historical Data

The historical data trend for Vertu Motors'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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Vertu Motors Inventory Turnover Chart

Vertu Motors Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

Inventory Turnover

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4.42

3.57

6.06

5.95

Vertu Motors Semi-Annual Data
	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23	Feb24
Inventory Turnover	Get a 7-Day Free Trial															3.43	3.64	3.00	3.20	2.82

Vertu Motors Inventory Turnover Calculation

Vertu Motors's Inventory Turnover for the fiscal year that ended in Feb. 2024 is calculated as

	Inventory Turnover (A: Feb. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Feb. 2024 )	/ (	(Total Inventories (A: Feb. 2023 )	+	Total Inventories (A: Feb. 2024 ))	/	count )
=	4920.014	/ (	(760.714	+	891.882)	/	2 )
=	4920.014	/	826.298
=	5.95

Vertu Motors's Inventory Turnover for the quarter that ended in Feb. 2024 is calculated as

	Inventory Turnover (Q: Feb. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Feb. 2024 )	/ (	(Total Inventories (Q: Aug. 2023 )	+	Total Inventories (Q: Feb. 2024 ))	/	count )
=	2397.405	/ (	(809.212	+	891.882)	/	2 )
=	2397.405	/	850.547
=	2.82

Vertu Motors (FRA:V2N) 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.

Vertu Motors's Days Inventory for the six months ended in Feb. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Feb. 2024 )	/	Cost of Goods Sold (Q: Feb. 2024 )	*	Days in Period
	=	850.547	/	2397.405	*	365 / 2
	=	64.75

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.

Vertu Motors's Inventory to Revenue for the quarter that ended in Feb. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Feb. 2024 )	/	Revenue (Q: Feb. 2024 )
	=	850.547	/	2688.69
	=	0.32

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.

Vertu Motors Inventory Turnover Related Terms

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Vertu Motors (FRA:V2N) Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Vertu Motors PLC (FRA:V2N) » Definitions » Inventory Turnover

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VTMTF:USA VTU.GB:UK VTU:UK

Address

Vertu House, 5th Avenue Business Park, Team Valley, Gateshead, Tyne and Wear, GBR, NE11 0XA

Website

https://www.vertumotors.com

Vertu Motors PLC is an automotive retailer in the United Kingdom. The business activity of the group includes selling new cars, motorcycles, commercial vehicles, and used vehicles, together with after-sale services. It operates through various franchise dealerships, such as Volkswagen, Land Rover, Audi, Mercedes-Benz, Jaguar, Kia, Toyota, and many others. The company generates maximum revenue from Used cars.

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