FTCHQ (Farfetch) Inventory Turnover: 0.84 (As of Jun. 2023)

What is Farfetch Inventory Turnover?

Farfetch FTCHQ -90.00% 12 Inventory Turnover is 0.84 as of Jun. 2023. GuruFocus rates FTCHQ with a GF Score™ of 12/100.

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. Farfetch's Cost of Goods Sold for the three months ended in Jun. 2023 was $329 Mil. Farfetch's Average Total Inventories for the quarter that ended in Jun. 2023 was $393 Mil. Farfetch's Inventory Turnover for the quarter that ended in Jun. 2023 was 0.84.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Farfetch's Days Inventory for the three months ended in Jun. 2023 was 109.04.

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. Farfetch's Inventory-to-Revenue for the quarter that ended in Jun. 2023 was 0.69.

Farfetch (OTCPK:FTCHQ) 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.

Farfetch's Days Inventory for the three months ended in Jun. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2023 )	/	Cost of Goods Sold (Q: Jun. 2023 )	*	Days in Period
	=	393.3915	/	329.213	*	365 / 4
	=	109.04

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.

Farfetch's Inventory to Revenue for the quarter that ended in Jun. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2023 )	/	Revenue (Q: Jun. 2023 )
	=	393.3915	/	572.086
	=	0.69

* 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.

Farfetch Inventory Turnover Related Terms

Farfetch Inventory Turnover Historical Data

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The historical data trend for Farfetch's Inventory Turnover can be seen below:

Farfetch Inventory Turnover Chart

Farfetch Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Inventory Turnover

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5.45

5.94

6.61

6.19

4.30

Farfetch Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Inventory Turnover	Get a 7-Day Free Trial															1.05	1.10	1.14	0.91	0.84

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Farfetch Ltd FTCHQ

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Farfetch Inventory Turnover Calculation

Farfetch'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 )
=	1293.505	/ (	(255.664	+	345.969)	/	2 )
=	1293.505	/	300.8165
=	4.30

Farfetch's Inventory Turnover for the quarter that ended in Jun. 2023 is calculated as

	Inventory Turnover (Q: Jun. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jun. 2023 )	/ (	(Total Inventories (Q: Mar. 2023 )	+	Total Inventories (Q: Jun. 2023 ))	/	count )
=	329.213	/ (	(350.375	+	436.408)	/	2 )
=	329.213	/	393.3915
=	0.84

Frequently Asked Questions Learn more about Inventory Turnover →

What does a Inventory Turnover of 0.84 mean?

Farfetch (FTCHQ) has a Inventory Turnover of 0.84 as of Jun. 2023. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Farfetch and its competitors.

Is Farfetch's Inventory Turnover too high?

Farfetch's current Inventory Turnover is 0.84. Overall, Farfetch has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.

How does Farfetch's Inventory Turnover compare to LQDT and FINR?

Farfetch's Inventory Turnover of 0.84 can be compared against companies in the Retail - Cyclical 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 Retail - Cyclical company?

A good Inventory Turnover depends on the Retail - Cyclical 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 Farfetch and its competitors. Farfetch's current Inventory Turnover is 0.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Farfetch stock overvalued right now?

Farfetch (FTCHQ) has a current Inventory Turnover of 0.84. The current Inventory Turnover is 0.84. Farfetch's overall GF Score™ is 12/100. 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 Farfetch (FTCHQ), the current Inventory Turnover is 0.84 as of Jun. 2023. 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.

Farfetch Business Description

Industry Consumer Cyclical Retail - Cyclical

Comparable Companies LQDT FINR OSTK TDUP WBUY QRTEA JMIA DTC RVLV NEGG AMZN BABA PDD HKSE:03690 MELI JD CPNG SE EBAY TSE:4689

Address The Bower, 211 Old Street, London, GBR, EC1V 9NR

Website https://www.farfetchinvestors.com

Farfetch Ltd is an online platform connecting sellers and buyers of personal luxury goods. It was founded in 2008. The company partners with over 1,000 luxury goods sellers to offer their inventory on the platform. When making the retailers' stock available to almost a million active customers, the company charges a cut of over 30% (third-party take rate). The company operates digital marketplace platform Farfetch, Browns stores, acquired branded company New Guard Group and Farfetch solutions, powering e-commerce operations of luxury brands.

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