PMLAY (Parmalat SpA) Inventory Turnover : 3.53 (As of Jun. 2018)

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What is Parmalat SpA 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. Parmalat SpA's Cost of Goods Sold for the six months ended in Jun. 2018 was $2,873 Mil. Parmalat SpA's Average Total Inventories for the quarter that ended in Jun. 2018 was $814 Mil. Parmalat SpA's Inventory Turnover for the quarter that ended in Jun. 2018 was 3.53.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Parmalat SpA's Days Inventory for the six months ended in Jun. 2018 was 51.72.

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. Parmalat SpA's Inventory-to-Revenue for the quarter that ended in Jun. 2018 was 0.23.

Parmalat SpA Inventory Turnover Historical Data

The historical data trend for Parmalat SpA'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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Parmalat SpA Inventory Turnover Chart

Parmalat SpA Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Inventory Turnover

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9.26

8.69

8.85

7.98

8.17

Parmalat SpA Semi-Annual Data
	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18
Inventory Turnover	Get a 7-Day Free Trial															4.00	4.07	3.73	3.99	3.53

Parmalat SpA Inventory Turnover Calculation

Parmalat SpA's Inventory Turnover for the fiscal year that ended in Dec. 2017 is calculated as

	Inventory Turnover (A: Dec. 2017 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2017 )	/ (	(Total Inventories (A: Dec. 2016 )	+	Total Inventories (A: Dec. 2017 ))	/	count )
=	6416.45	/ (	(763.186	+	807.219)	/	2 )
=	6416.45	/	785.2025
=	8.17

Parmalat SpA's Inventory Turnover for the quarter that ended in Jun. 2018 is calculated as

	Inventory Turnover (Q: Jun. 2018 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jun. 2018 )	/ (	(Total Inventories (Q: Dec. 2017 )	+	Total Inventories (Q: Jun. 2018 ))	/	count )
=	2872.78	/ (	(807.219	+	821.028)	/	2 )
=	2872.78	/	814.1235
=	3.53

Parmalat SpA (GREY:PMLAY) 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.

Parmalat SpA's Days Inventory for the six months ended in Jun. 2018 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2018 )	/	Cost of Goods Sold (Q: Jun. 2018 )	*	Days in Period
	=	814.1235	/	2872.78	*	365 / 2
	=	51.72

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.

Parmalat SpA's Inventory to Revenue for the quarter that ended in Jun. 2018 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2018 )	/	Revenue (Q: Jun. 2018 )
	=	814.1235	/	3550.584
	=	0.23

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.

Parmalat SpA Inventory Turnover Related Terms

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Parmalat SpA Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Parmalat SpA (GREY:PMLAY) » Definitions » Inventory Turnover

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Traded in Other Exchanges

N/A

Address

Via delle Nazioni Unite 4, Collecchio, ITA, 43044

Website

http://www.parmalat.com

Parmalat SpA primarily produces, markets, and distributes milk products and fruit-based drinks under a number of brand names such as Bern, Lactis, Gold, and Solac. The company's products are categorised into milk products such as fresh milk, milk powders, condensed milk and cream; cheese and other fresh products such as yogurt, desserts, and butter; and fruit beverages such as juices, nectars, and tea. The milk sales contribute the majority of the total revenue. Parmalat has operations throughout the world with five geographic operating segments: Europe, North America, Latin America, Africa, and Oceania. Among all the countries in which the firm operates, Italy contributes the vast majority of total sales.

Parmalat SpA Headlines

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