Fisher & Paykel Healthcare (NZSE:FPH) Inventory Turnover : 0.88 (As of Sep. 2023)

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What is Fisher & Paykel Healthcare 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. Fisher & Paykel Healthcare's Cost of Goods Sold for the six months ended in Sep. 2023 was NZ$318 Mil. Fisher & Paykel Healthcare's Average Total Inventories for the quarter that ended in Sep. 2023 was NZ$363 Mil. Fisher & Paykel Healthcare's Inventory Turnover for the quarter that ended in Sep. 2023 was 0.88.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Fisher & Paykel Healthcare's Days Inventory for the six months ended in Sep. 2023 was 208.56.

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. Fisher & Paykel Healthcare's Inventory-to-Revenue for the quarter that ended in Sep. 2023 was 0.44.

Fisher & Paykel Healthcare Inventory Turnover Historical Data

The historical data trend for Fisher & Paykel Healthcare'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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Fisher & Paykel Healthcare Inventory Turnover Chart

Fisher & Paykel Healthcare Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Inventory Turnover

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2.71

3.03

3.48

2.00

1.77

Fisher & Paykel Healthcare Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Inventory Turnover	Get a 7-Day Free Trial															1.18	0.91	0.73	0.96	0.88

Fisher & Paykel Healthcare Inventory Turnover Calculation

Fisher & Paykel Healthcare's Inventory Turnover for the fiscal year that ended in Mar. 2023 is calculated as

	Inventory Turnover (A: Mar. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2023 )	/ (	(Total Inventories (A: Mar. 2022 )	+	Total Inventories (A: Mar. 2023 ))	/	count )
=	642.7	/ (	(358.9	+	365.8)	/	2 )
=	642.7	/	362.35
=	1.77

Fisher & Paykel Healthcare's Inventory Turnover for the quarter that ended in Sep. 2023 is calculated as

	Inventory Turnover (Q: Sep. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2023 )	/ (	(Total Inventories (Q: Mar. 2023 )	+	Total Inventories (Q: Sep. 2023 ))	/	count )
=	317.6	/ (	(365.8	+	360.1)	/	2 )
=	317.6	/	362.95
=	0.88

Fisher & Paykel Healthcare (NZSE:FPH) 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.

Fisher & Paykel Healthcare's Days Inventory for the six months ended in Sep. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2023 )	/	Cost of Goods Sold (Q: Sep. 2023 )	*	Days in Period
	=	362.95	/	317.6	*	365 / 2
	=	208.56

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.

Fisher & Paykel Healthcare's Inventory to Revenue for the quarter that ended in Sep. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	362.95	/	815.8
	=	0.44

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.

Fisher & Paykel Healthcare Inventory Turnover Related Terms

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Fisher & Paykel Healthcare (NZSE:FPH) Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Fisher & Paykel Healthcare Corp Ltd (NZSE:FPH) » Definitions » Inventory Turnover

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FSPKF:USA FPLB:Germany FPH:Australia

Address

15 Maurice Paykel Place, East Tamaki, Auckland, NTL, NZL, 2013

Website

https://www.fphcare.com

Fisher & Paykel Healthcare is one of the three largest respiratory care device companies globally. It is the market leader in hospital use humidifiers, masks and related consumables and the number three player in the at-home treatment of sleep apnoea using respiratory devices. Both the hospital and homecare markets for respiratory devices are growing strongly in the developed markets in which Fisher & Paykel has a presence. The company earns 42% of its revenue in the U.S., 32% in Europe, 18% in Asia-Pacific and the remaining 8% in emerging markets. Fisher conducts its own R&D and has thousands of patents and pending applications. It manufactures in New Zealand and Mexico and has a multichannel distribution model.