Balfour Beatty (LSE:BBY) Inventory Turnover : 30.02 (As of Dec. 2023)

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What is Balfour Beatty 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. Balfour Beatty's Cost of Goods Sold for the six months ended in Dec. 2023 was £3,962 Mil. Balfour Beatty's Average Total Inventories for the quarter that ended in Dec. 2023 was £132 Mil. Balfour Beatty's Inventory Turnover for the quarter that ended in Dec. 2023 was 30.02.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Balfour Beatty's Days Inventory for the six months ended in Dec. 2023 was 6.08.

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. Balfour Beatty's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.03.

Balfour Beatty Inventory Turnover Historical Data

The historical data trend for Balfour Beatty'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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Balfour Beatty Inventory Turnover Chart

Balfour Beatty Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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74.93

65.87

63.34

66.07

63.81

Balfour Beatty 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															33.33	31.75	33.39	28.59	30.02

Balfour Beatty Inventory Turnover Calculation

Balfour Beatty's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	7593	/ (	(114	+	124)	/	2 )
=	7593	/	119
=	63.81

Balfour Beatty'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 )
=	3962	/ (	(140	+	124)	/	2 )
=	3962	/	132
=	30.02

Balfour Beatty (LSE:BBY) 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.

Balfour Beatty'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
	=	132	/	3962	*	365 / 2
	=	6.08

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.

Balfour Beatty'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 )
	=	132	/	4182
	=	0.03

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.

Balfour Beatty Inventory Turnover Related Terms

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Balfour Beatty (LSE:BBY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Balfour Beatty PLC (LSE:BBY) » Definitions » Inventory Turnover

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Traded in Other Exchanges

BAFYY:USA BAFBF:USA BBYl:UK BIH:Germany

Address

5 Churchill Place, Canary Wharf, London, GBR, E14 5HU

Website

https://www.balfourbeatty.com

Balfour Beatty PLC finances, builds, and maintains infrastructure projects. It develops projects in energy, water, communications, transportation, and other industrial markets. In addition, the company manages construction businesses and provides maintenance and management services in power transmission, utilities infrastructure, road, and rail. Some projects are granted through concessions by government authorities. Balfour Beatty operates three business segments: Construction services (majority of total revenue), Support services, and Infrastructure investments. It will invest directly in infrastructure assets when there are opportunities to manage the projects upon completion and create recurring revenue. The majority of sales are derived from the United Kingdom and the United States.