Watami Co (TSE:7522) Inventory Turnover: 4.51 (As of Mar. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TSE:7522 Watami Co Ltd TSE:7522
76 GF Score
Price 円943.00
GF Value 円1,081.48
Valuation Modestly Undervalued
! 2 Warning Signs
View Full Analysis

What is Watami Co Inventory Turnover?

Watami Co TSE:7522 76 Inventory Turnover is 4.51 as of Mar. 2026. GuruFocus rates TSE:7522 with a GF Score™ of 76/100 and a GF Value™ of 円1,081.48 (Modestly Undervalued). The stock has 2 warning signs investors should review.

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. Watami Co's Cost of Goods Sold for the three months ended in Mar. 2026 was 円10,625 Mil. Watami Co's Average Total Inventories for the quarter that ended in Mar. 2026 was 円2,356 Mil. Watami Co's Inventory Turnover for the quarter that ended in Mar. 2026 was 4.51.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Watami Co's Days Inventory for the three months ended in Mar. 2026 was 20.23.

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. Watami Co's Inventory-to-Revenue for the quarter that ended in Mar. 2026 was 0.10.

Watami Co  (TSE:7522) 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.

Watami Co's Days Inventory for the three months ended in Mar. 2026 is calculated as:

Days Inventory =Average Total Inventories (Q: Mar. 2026 )/Cost of Goods Sold (Q: Mar. 2026 )*Days in Period
=2356/10625*365 / 4
=20.23

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.

Watami Co's Inventory to Revenue for the quarter that ended in Mar. 2026 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=2356 / 23920
=0.10

* 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.

Watami Co Inventory Turnover Related Terms

Watami Co Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Watami Co'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.

Watami Co Inventory Turnover Chart

Watami Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.28 26.21 19.13 16.99 17.39

Watami Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 Premium Member Only 4.27 4.19 4.53 4.79 4.51
TSE:7522
76GF Score
Watami Co Ltd TSE:7522
Inventory Turnover is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Watami Co Inventory Turnover Calculation

Watami Co's Inventory Turnover for the fiscal year that ended in Mar. 2026 is calculated as

Inventory Turnover (A: Mar. 2026 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Mar. 2026 ) / ((Total Inventories (A: Mar. 2025 ) + Total Inventories (A: Mar. 2026 )) / count )
=41279 / ((2357 + 2390) / 2 )
=41279 / 2373.5
=17.39

Watami Co's Inventory Turnover for the quarter that ended in Mar. 2026 is calculated as

Inventory Turnover (Q: Mar. 2026 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Mar. 2026 ) / ((Total Inventories (Q: Dec. 2025 ) + Total Inventories (Q: Mar. 2026 )) / count )
=10625 / ((2322 + 2390) / 2 )
=10625 / 2356
=4.51

* 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 4.51 mean?
Watami Co (TSE:7522) has a Inventory Turnover of 4.51 as of Mar. 2026. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Watami Co and its competitors.
Is Watami Co's Inventory Turnover too high?
Watami Co's current Inventory Turnover is 4.51. Overall, Watami Co has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Watami Co's Inventory Turnover compare to MCD and SBUX?
Watami Co's Inventory Turnover of 4.51 can be compared against companies in the Restaurants 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 Restaurants company?
A good Inventory Turnover depends on the Restaurants 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 Watami Co and its competitors. Watami Co's current Inventory Turnover is 4.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Watami Co stock overvalued right now?
Based on GuruFocus' analysis, Watami Co (TSE:7522) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,081.48, compared to a current price of 円943.00 — trading 12.8% below its estimated fair value. The current Inventory Turnover is 4.51. Watami Co's overall GF Score™ is 76/100 with 2 warning signs to review. 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 Watami Co (TSE:7522), the current Inventory Turnover is 4.51 as of Mar. 2026. 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.

Is Watami Co (TSE:7522) Overvalued in 2026?

Based on GuruFocus' analysis, Watami Co stock appears to be undervalued. The current stock price of 円943.00 is trading 12.8% below its estimated GF Value™ of 円1,081.48. GuruFocus considers Watami Co to be Modestly Undervalued.

Key valuation signals for TSE:7522:

  • Inventory Turnover: 4.51
  • GF Value™: 円1,081.48 vs. price of 円943.00 (12.8% below fair value)
  • GF Score™: 76/100 with 2 warning signs

No single metric tells the full story. See the TSE:7522 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Watami Co Business Description

Address 1-1-3 Haneda, Ota-ku, Tokyo, JPN, 144-0043
Watami Co Ltd is engaged in the management and operation of restaurants. It is also involved in the production and sale of agricultural products; and home visit nursing, in-home nursing care support, and institutional care businesses. The company conducts organic farming, animal husbandry and dairy farming from Hokkaido to Kyushu.
76GF Score

Get the complete analysis for TSE:7522

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

円943.00
Price
円1,081.48
GF Value