Fan Milk (XGHA:FML) Inventory Turnover : 0.85 (As of Dec. 2022)

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What is Fan Milk 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. Fan Milk's Cost of Goods Sold for the three months ended in Dec. 2022 was GHS141.9 Mil. Fan Milk's Average Total Inventories for the quarter that ended in Dec. 2022 was GHS166.0 Mil. Fan Milk's Inventory Turnover for the quarter that ended in Dec. 2022 was 0.85.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Fan Milk's Days Inventory for the three months ended in Dec. 2022 was 106.79.

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. Fan Milk's Inventory-to-Revenue for the quarter that ended in Dec. 2022 was 1.07.

Fan Milk Inventory Turnover Historical Data

The historical data trend for Fan Milk'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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Fan Milk Inventory Turnover Chart

Fan Milk Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec21

Dec22

Inventory Turnover

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4.02

4.12

3.46

2.61

2.64

Fan Milk Quarterly Data
	Jun15	Sep15	Dec15	Mar16	Dec16	Mar17	Dec17	Sep18	Dec18	Sep19	Dec19	Sep20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22
Inventory Turnover	Get a 7-Day Free Trial															0.75	0.61	0.68	0.50	0.85

Fan Milk Inventory Turnover Calculation

Fan Milk's Inventory Turnover for the fiscal year that ended in Dec. 2022 is calculated as

	Inventory Turnover (A: Dec. 2022 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2022 )	/ (	(Total Inventories (A: Dec. 2021 )	+	Total Inventories (A: Dec. 2022 ))	/	count )
=	421.066	/ (	(168.083	+	150.977)	/	2 )
=	421.066	/	159.53
=	2.64

Fan Milk's Inventory Turnover for the quarter that ended in Dec. 2022 is calculated as

	Inventory Turnover (Q: Dec. 2022 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2022 )	/ (	(Total Inventories (Q: Sep. 2022 )	+	Total Inventories (Q: Dec. 2022 ))	/	count )
=	141.862	/ (	(181.071	+	150.977)	/	2 )
=	141.862	/	166.024
=	0.85

Fan Milk (XGHA:FML) 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.

Fan Milk's Days Inventory for the three months ended in Dec. 2022 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2022 )	/	Cost of Goods Sold (Q: Dec. 2022 )	*	Days in Period
	=	166.024	/	141.862	*	365 / 4
	=	106.79

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.

Fan Milk's Inventory to Revenue for the quarter that ended in Dec. 2022 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2022 )	/	Revenue (Q: Dec. 2022 )
	=	166.024	/	154.757
	=	1.07

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.

Fan Milk Inventory Turnover Related Terms

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Fan Milk (XGHA:FML) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Fan Milk PLC (XGHA:FML) » Definitions » Inventory Turnover

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Traded in Other Exchanges

N/A

Address

Airport Commercial Centre, 2nd Floor, Grand Oyeman Building, Accra, GHA

Website

https://www.fanmilk.com

Fan Milk PLC engages in the manufacturing and distribution of dairy products and fruit drinks. The company's milk-based products consist of frozen ice creams, chocolate, and yoghurt that includes FanYogo (yoghurt), FanChoco (chocolate), and FanIce (ice cream). Its fruit-based products include FanDango (fruit drink) and FanPop. It distributes its products through independent distributors and agents. The majority of the revenue is derived from the manufacturing and distribution of dairy products and fruit drinks.

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