Shoprite Holdings (JSE:SHP2.PFD) Inventory Turnover : 3.40 (As of Dec. 2023)

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What is Shoprite Holdings 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. Shoprite Holdings's Cost of Goods Sold for the six months ended in Dec. 2023 was R92,480.00 Mil. Shoprite Holdings's Average Total Inventories for the quarter that ended in Dec. 2023 was R27,181.00 Mil. Shoprite Holdings's Inventory Turnover for the quarter that ended in Dec. 2023 was 3.40.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Shoprite Holdings's Days Inventory for the six months ended in Dec. 2023 was 53.64.

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. Shoprite Holdings's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.22.

Shoprite Holdings Inventory Turnover Historical Data

The historical data trend for Shoprite Holdings'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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Shoprite Holdings Inventory Turnover Chart

Shoprite Holdings Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Inventory Turnover

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5.82

5.95

6.81

6.89

6.95

Shoprite Holdings Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															3.46	3.21	3.44	3.25	3.40

Shoprite Holdings Inventory Turnover Calculation

Shoprite Holdings's Inventory Turnover for the fiscal year that ended in Jun. 2023 is calculated as

	Inventory Turnover (A: Jun. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jun. 2023 )	/ (	(Total Inventories (A: Jun. 2022 )	+	Total Inventories (A: Jun. 2023 ))	/	count )
=	163250	/ (	(21879	+	25090)	/	2 )
=	163250	/	23484.5
=	6.95

Shoprite Holdings's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Jun. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	92480	/ (	(25090	+	29272)	/	2 )
=	92480	/	27181
=	3.40

Shoprite Holdings (JSE:SHP2.PFD) 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.

Shoprite Holdings's Days Inventory for the six months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	27181	/	92480	*	365 / 2
	=	53.64

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.

Shoprite Holdings's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	27181	/	121079
	=	0.22

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.

Shoprite Holdings Inventory Turnover Related Terms

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Shoprite Holdings (JSE:SHP2.PFD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Shoprite Holdings Ltd (JSE:SHP2.PFD) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

SHOPRITE:Zambia SHP:South Africa SRHGF:USA SRGHY:USA SRH:Namibia

Address

Cnr William Dabs Street and Old Paarl Road, Brackenfell, WC, ZAF, 7560

Website

https://www.shopriteholdings.co.za

Shoprite Holdings Ltd is part of The Shoprite Group of Companies, an African food retailer, which operates in countries across Africa and the Indian Ocean Islands. The primary business is food retailing. Besides food retailing, the company is operating in furniture, house products, fast foods, pharmacies, and liquor business segments. The company is targeting consumers at all income levels. The Checkers, Checkers Hyper, and House & Home stores address higher-income groups, while Shoprite Usave focuses on the lower end of the market. Shoprite and OK Furniture offer products for the middle- to lower-income market. The company's reportable segment includes, Supermarkets RSA, Supermarkets Non-RSA, Furniture and Other operating segment.

Shoprite Holdings (JSE:SHP2.PFD) Headlines

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