McColl's Retail Group (LSE:MCLS) Inventory Turnover: 5.74 (As of May. 2021)


LSE:MCLS McColl's Retail Group PLC LSE:MCLS
4 GF Score
Price £0.02
View Full Analysis

What is McColl's Retail Group Inventory Turnover?

McColl's Retail Group LSE:MCLS 4 Inventory Turnover is 5.74 as of May. 2021. GuruFocus rates LSE:MCLS with a GF Score™ of 4/100.

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. McColl's Retail Group's Cost of Goods Sold for the six months ended in May. 2021 was £438 Mil. McColl's Retail Group's Average Total Inventories for the quarter that ended in May. 2021 was £76 Mil. McColl's Retail Group's Inventory Turnover for the quarter that ended in May. 2021 was 5.74.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. McColl's Retail Group's Days Inventory for the six months ended in May. 2021 was 31.78.

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. McColl's Retail Group's Inventory-to-Revenue for the quarter that ended in May. 2021 was 0.13.

McColl's Retail Group  (LSE:MCLS) 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.

McColl's Retail Group's Days Inventory for the six months ended in May. 2021 is calculated as:

Days Inventory =Average Total Inventories (Q: May. 2021 )/Cost of Goods Sold (Q: May. 2021 )*Days in Period
=76.35/438.4*365 / 2
=31.78

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.

McColl's Retail Group's Inventory to Revenue for the quarter that ended in May. 2021 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: May. 2021 ) / Revenue (Q: May. 2021 )
=76.35 / 572.7
=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.

McColl's Retail Group Inventory Turnover Related Terms

McColl's Retail Group Inventory Turnover Historical Data

* Premium members only.

The historical data trend for McColl's Retail Group'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.

McColl's Retail Group Inventory Turnover Chart

McColl's Retail Group Annual Data
Trend Nov11 Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.38 12.84 11.82 10.87 11.66

McColl's Retail Group Semi-Annual Data
Nov11 Nov12 May13 Nov13 May14 Nov14 May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.81 5.47 5.43 6.34 5.74
LSE:MCLS
4GF Score
McColl's Retail Group PLC LSE:MCLS
Inventory Turnover is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

McColl's Retail Group Inventory Turnover Calculation

McColl's Retail Group's Inventory Turnover for the fiscal year that ended in Nov. 2020 is calculated as

Inventory Turnover (A: Nov. 2020 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Nov. 2020 ) / ((Total Inventories (A: Nov. 2019 ) + Total Inventories (A: Nov. 2020 )) / count )
=957.2 / ((86.4 + 77.8) / 2 )
=957.2 / 82.1
=11.66

McColl's Retail Group's Inventory Turnover for the quarter that ended in May. 2021 is calculated as

Inventory Turnover (Q: May. 2021 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: May. 2021 ) / ((Total Inventories (Q: Nov. 2020 ) + Total Inventories (Q: May. 2021 )) / count )
=438.4 / ((77.8 + 74.9) / 2 )
=438.4 / 76.35
=5.74

* 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 5.74 mean?
McColl's Retail Group (LSE:MCLS) has a Inventory Turnover of 5.74 as of May. 2021. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on McColl's Retail Group and its competitors.
Is McColl's Retail Group's Inventory Turnover too high?
McColl's Retail Group's current Inventory Turnover is 5.74. Overall, McColl's Retail Group has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does McColl's Retail Group's Inventory Turnover compare to BSY and WETG?
McColl's Retail Group's Inventory Turnover of 5.74 can be compared against companies in the Retail - Defensive 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 - Defensive company?
A good Inventory Turnover depends on the Retail - Defensive 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 McColl's Retail Group and its competitors. McColl's Retail Group's current Inventory Turnover is 5.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McColl's Retail Group stock overvalued right now?
McColl's Retail Group (LSE:MCLS) has a current Inventory Turnover of 5.74. The current Inventory Turnover is 5.74. McColl's Retail Group's overall GF Score™ is 4/100. 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 McColl's Retail Group (LSE:MCLS), the current Inventory Turnover is 5.74 as of May. 2021. 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.

McColl's Retail Group Business Description

Address One London Road, Ground Floor West, Brentwood, Essex, GBR, CM14 4QW
McColl's Retail Group PLC is a retailer operator of convenience and newsagent stores. The company's products and services include everyday groceries, milk, baked beans, fruit pots, snacks, and ready meals, Lotto, Paypoint, and beers, wines, and spirits. The group operates more than 800 convenience stores and approximately 400 newsagent stores. It derives most of the revenue from convenience stores.
4GF Score

Get the complete analysis for LSE:MCLS

Inventory Turnover is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£0.02
Price