Future Retail (NSE:FRETAIL) Inventory Turnover: 0.66 (As of Dec. 2021)

What is Future Retail Inventory Turnover?

Future Retail NSE:FRETAIL 4 Inventory Turnover is 0.66 as of Dec. 2021. GuruFocus rates NSE:FRETAIL 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. Future Retail's Cost of Goods Sold for the three months ended in Dec. 2021 was ₹23,192 Mil. Future Retail's Average Total Inventories for the quarter that ended in Dec. 2021 was ₹35,132 Mil. Future Retail's Inventory Turnover for the quarter that ended in Dec. 2021 was 0.66.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Future Retail's Days Inventory for the three months ended in Dec. 2021 was 138.23.

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. Future Retail's Inventory-to-Revenue for the quarter that ended in Dec. 2021 was 1.25.

Future Retail (NSE:FRETAIL) 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.

Future Retail's Days Inventory for the three months ended in Dec. 2021 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2021 )	/	Cost of Goods Sold (Q: Dec. 2021 )	*	Days in Period
	=	35132.2	/	23191.6	*	365 / 4
	=	138.23

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.

Future Retail's Inventory to Revenue for the quarter that ended in Dec. 2021 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2021 )	/	Revenue (Q: Dec. 2021 )
	=	35132.2	/	28156.8
	=	1.25

* 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.

Future Retail Inventory Turnover Related Terms

Future Retail Inventory Turnover Historical Data

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

Future Retail Inventory Turnover Chart

Future Retail Annual Data

Trend

Dec11

Dec12

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Inventory Turnover

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3.65

3.37

3.13

2.91

1.09

Future Retail Quarterly Data
	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21
Inventory Turnover	Get a 7-Day Free Trial															0.25	0.42	0.30	0.57	0.66

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Future Retail Inventory Turnover Calculation

Future Retail's Inventory Turnover for the fiscal year that ended in Mar. 2021 is calculated as

	Inventory Turnover (A: Mar. 2021 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2021 )	/ (	(Total Inventories (A: Mar. 2020 )	+	Total Inventories (A: Mar. 2021 ))	/	count )
=	50215.6	/ (	(52464.4	+	40024.3)	/	2 )
=	50215.6	/	46244.35
=	1.09

Future Retail's Inventory Turnover for the quarter that ended in Dec. 2021 is calculated as

	Inventory Turnover (Q: Dec. 2021 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2021 )	/ (	(Total Inventories (Q: Sep. 2021 )	+	Total Inventories (Q: Dec. 2021 ))	/	count )
=	23191.6	/ (	(35132.2	+	0)	/	1 )
=	23191.6	/	35132.2
=	0.66

Frequently Asked Questions Learn more about Inventory Turnover →

What does a Inventory Turnover of 0.66 mean?

Future Retail (NSE:FRETAIL) has a Inventory Turnover of 0.66 as of Dec. 2021. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Future Retail and its competitors.

Is Future Retail's Inventory Turnover too high?

Future Retail's current Inventory Turnover is 0.66. Overall, Future Retail has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.

How does Future Retail's Inventory Turnover compare to M and KSS?

Future Retail's Inventory Turnover of 0.66 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 Future Retail and its competitors. Future Retail's current Inventory Turnover is 0.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Future Retail stock overvalued right now?

Future Retail (NSE:FRETAIL) has a current Inventory Turnover of 0.66. The current Inventory Turnover is 0.66. Future Retail'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 Future Retail (NSE:FRETAIL), the current Inventory Turnover is 0.66 as of Dec. 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.

Future Retail Business Description

Industry Consumer Cyclical Retail - Cyclical

Comparable Companies BOM:542337 NSE:OSIAHYPER BOM:523574 BOM:540146 BOM:537392 BOM:512600 PHS:SM TSE:8267 BKK:MAKRO MEX:LIVEPOL1 JSE:SHP TSE:9005 XSGO:FALABELLA BKK:CRC M SHSE:601933 SHSE:600655 KSS BSP:LREN3 DDS

Address Off. Jogeshwari-Vikhroli Link Road, Knowledge House, Shyam Nagar, Jogeshwari (East), Mumbai, MH, IND, 400 060

Website https://www.futureretail.in

Future Retail Ltd is an India-based company engaged in the business of multi-brand retail trading. The company's store networks are operated under various brand names, including Big Bazaar, easyday, fbb, and Foodhall. The company focuses on the hypermarket, supermarket, and home solutions segment.

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