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British American Tobacco (XTER:BMT) Inventory Turnover : 0.46 (As of Dec. 2024)


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What is British American Tobacco 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. British American Tobacco's Cost of Goods Sold for the six months ended in Dec. 2024 was €2,743 Mil. British American Tobacco's Average Total Inventories for the quarter that ended in Dec. 2024 was €5,939 Mil. British American Tobacco's Inventory Turnover for the quarter that ended in Dec. 2024 was 0.46.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. British American Tobacco's Days Inventory for the six months ended in Dec. 2024 was 395.11.

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. British American Tobacco's Inventory-to-Revenue for the quarter that ended in Dec. 2024 was 0.36.


British American Tobacco Inventory Turnover Historical Data

The historical data trend for British American Tobacco'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.

* Premium members only.

British American Tobacco Inventory Turnover Chart

British American Tobacco Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.66 0.80 0.82 0.88 0.95

British American Tobacco Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
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 0.41 0.40 0.45 0.42 0.46

British American Tobacco Inventory Turnover Calculation

British American Tobacco's Inventory Turnover for the fiscal year that ended in Dec. 2024 is calculated as

Inventory Turnover (A: Dec. 2024 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2024 ) / ((Total Inventories (A: Dec. 2023 ) + Total Inventories (A: Dec. 2024 )) / count )
=5355.727 / ((5731.83 + 5573.047) / 2 )
=5355.727 / 5652.4385
=0.95

British American Tobacco's Inventory Turnover for the quarter that ended in Dec. 2024 is calculated as

Inventory Turnover (Q: Dec. 2024 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Dec. 2024 ) / ((Total Inventories (Q: Jun. 2024 ) + Total Inventories (Q: Dec. 2024 )) / count )
=2743.06 / ((6304.435 + 5573.047) / 2 )
=2743.06 / 5938.741
=0.46

* 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.


British American Tobacco  (XTER:BMT) 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.

British American Tobacco's Days Inventory for the six months ended in Dec. 2024 is calculated as:

Days Inventory =Average Total Inventories (Q: Dec. 2024 )/Cost of Goods Sold (Q: Dec. 2024 )*Days in Period
=5938.741/2743.06*365 / 2
=395.11

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.

British American Tobacco's Inventory to Revenue for the quarter that ended in Dec. 2024 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=5938.741 / 16331.587
=0.36

* 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.


British American Tobacco Inventory Turnover Related Terms

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British American Tobacco Business Description

Address
Globe House, 4 Temple Place, London, GBR, WC2R 2PG
The second-largest tobacco company by volume, British American Tobacco sold 505 billion cigarettes in 2024. Its leading brands are Dunhill, Kent, Pall Mall, Lucky Strike, and Rothmans in cigarettes. Its ownership of the Camel, Natural American Spirit, and Newport brands are limited to the us. In next-generation products, the company has the Vuse brand in vaping, Glo in heated tobacco, and Velo in modern oral tobacco. The company also owns a 25.5% stake in ITC limited, the largest Indian cigarette company.

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