Fonterra Co-operative Group (NZSE:FCG) Inventory Turnover : 1.67 (As of Jan. 2025)

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What is Fonterra Co-operative Group 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. Fonterra Co-operative Group's Cost of Goods Sold for the six months ended in Jan. 2025 was NZ$10,364 Mil. Fonterra Co-operative Group's Average Total Inventories for the quarter that ended in Jan. 2025 was NZ$6,198 Mil. Fonterra Co-operative Group's Inventory Turnover for the quarter that ended in Jan. 2025 was 1.67.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Fonterra Co-operative Group's Days Inventory for the six months ended in Jan. 2025 was 109.13.

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. Fonterra Co-operative Group's Inventory-to-Revenue for the quarter that ended in Jan. 2025 was 0.49.

Fonterra Co-operative Group Inventory Turnover Historical Data

The historical data trend for Fonterra Co-operative 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.

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Fonterra Co-operative Group Inventory Turnover Chart

Fonterra Co-operative Group Annual Data

Trend

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

Jul24

Inventory Turnover

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5.35

5.00

4.26

4.32

4.36

Fonterra Co-operative Group Semi-Annual Data
	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23	Jan24	Jul24	Jan25
Inventory Turnover	Get a 7-Day Free Trial															1.72	1.81	2.10	2.26	1.67

Fonterra Co-operative Group Inventory Turnover Calculation

Fonterra Co-operative Group's Inventory Turnover for the fiscal year that ended in Jul. 2024 is calculated as

	Inventory Turnover (A: Jul. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jul. 2024 )	/ (	(Total Inventories (A: Jul. 2023 )	+	Total Inventories (A: Jul. 2024 ))	/	count )
=	19000	/ (	(4306	+	4405)	/	2 )
=	19000	/	4355.5
=	4.36

Fonterra Co-operative Group's Inventory Turnover for the quarter that ended in Jan. 2025 is calculated as

	Inventory Turnover (Q: Jan. 2025 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jan. 2025 )	/ (	(Total Inventories (Q: Jul. 2024 )	+	Total Inventories (Q: Jan. 2025 ))	/	count )
=	10364	/ (	(4405	+	7990)	/	2 )
=	10364	/	6197.5
=	1.67

Fonterra Co-operative Group (NZSE:FCG) 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.

Fonterra Co-operative Group's Days Inventory for the six months ended in Jan. 2025 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jan. 2025 )	/	Cost of Goods Sold (Q: Jan. 2025 )	*	Days in Period
	=	6197.5	/	10364	*	365 / 2
	=	109.13

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.

Fonterra Co-operative Group's Inventory to Revenue for the quarter that ended in Jan. 2025 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jan. 2025 )	/	Revenue (Q: Jan. 2025 )
	=	6197.5	/	12592
	=	0.49

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.

Fonterra Co-operative Group Inventory Turnover Related Terms

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Fonterra Co-operative Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Fonterra Co-operative Group Ltd (NZSE:FCG) » Definitions » Inventory Turnover

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Traded in Other Exchanges

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Address

109 Fanshawe Street, Auckland Central, Auckland, NTL, NZL, 1010

Website

https://www.fonterra.com

Fonterra Co-operative Group Ltd operates predominantly in the international dairy industry. The company is involved in the collection, manufacture, and sale of milk and milk-derived products through its ingredients, Consumer and Foodservice channels. The company's reportable segments are Global Markets, Greater China, and Core Operations and the majority of the revenue is generated from its core operations segment. Its primary geographic markets is Asia, China, Australia, New Zealand, the United States, and the Rest of the world.