HGGG (hhgregg) Inventory Turnover: 5.47 (As of Mar. 2016)


What is hhgregg Inventory Turnover?

hhgregg HGGG Inventory Turnover is 5.47 as of Mar. 2016.

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. hhgregg's Cost of Goods Sold for the six months ended in Mar. 2016 was $1,406 Mil. hhgregg's Average Total Inventories for the quarter that ended in Mar. 2016 was $257 Mil. hhgregg's Inventory Turnover for the quarter that ended in Mar. 2016 was 5.47.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. hhgregg's Days Inventory for the six months ended in Mar. 2016 was 33.36.

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. hhgregg's Inventory-to-Revenue for the quarter that ended in Mar. 2016 was 0.13.

hhgregg  (OTCPK:HGGG) 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.

hhgregg's Days Inventory for the six months ended in Mar. 2016 is calculated as:

Days Inventory =Average Total Inventories (Q: Mar. 2016 )/Cost of Goods Sold (Q: Mar. 2016 )*Days in Period
=257.014/1406.216*365 / 2
=33.36

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.

hhgregg's Inventory to Revenue for the quarter that ended in Mar. 2016 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Mar. 2016 ) / Revenue (Q: Mar. 2016 )
=257.014 / 1959.998
=0.13

* 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.

hhgregg Inventory Turnover Related Terms

hhgregg Inventory Turnover Historical Data

* Premium members only.

The historical data trend for hhgregg'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.

hhgregg Inventory Turnover Chart

hhgregg Annual Data
Trend Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.17 5.88 5.45 5.48 5.47

hhgregg Semi-Annual Data
Mar03 Mar04 Mar05 Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16
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 7.17 5.88 5.45 5.48 5.47

hhgregg Inventory Turnover Calculation

hhgregg's Inventory Turnover for the fiscal year that ended in Mar. 2016 is calculated as

Inventory Turnover (A: Mar. 2016 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Mar. 2016 ) / ((Total Inventories (A: Mar. 2015 ) + Total Inventories (A: Mar. 2016 )) / count )
=1406.216 / ((257.469 + 256.559) / 2 )
=1406.216 / 257.014
=5.47

hhgregg's Inventory Turnover for the quarter that ended in Mar. 2016 is calculated as

Inventory Turnover (Q: Mar. 2016 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Mar. 2016 ) / ((Total Inventories (Q: Mar. 2015 ) + Total Inventories (Q: Mar. 2016 )) / count )
=1406.216 / ((257.469 + 256.559) / 2 )
=1406.216 / 257.014
=5.47

* 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 5.47 mean?
hhgregg (HGGG) has a Inventory Turnover of 5.47 as of Mar. 2016. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on hhgregg and its competitors.
Is hhgregg's Inventory Turnover too high?
hhgregg's current Inventory Turnover is 5.47.
How does hhgregg's Inventory Turnover compare to POLCQ and ORLY?
hhgregg's Inventory Turnover of 5.47 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 hhgregg and its competitors. hhgregg's current Inventory Turnover is 5.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is hhgregg stock overvalued right now?
hhgregg (HGGG) has a current Inventory Turnover of 5.47. The current Inventory Turnover is 5.47. 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 hhgregg (HGGG), the current Inventory Turnover is 5.47 as of Mar. 2016. 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.

hhgregg Business Description

Address 160 West Carmel Drive, Suite 263, Carmel, IN, USA, 46240
hhgregg Inc is a part of the retail sector. It is a multi-regional retailer which provides an extensive selection of premium appliances, consumer electronics, home products and computers and tablets in its brick-and-mortar stores in the United States via hhgregg.com. The company's sales are categorized into four products; Appliances, which include refrigerators, cooking ranges, dishwashers; Consumer electronics such as 4K and OLED televisions and audio systems; Home Products which include furniture and mattresses and computer systems.