adidas AG (adidas AG) Inventory Turnover : 0.57 (As of Dec. 2023)

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What is adidas AG 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. adidas AG's Cost of Goods Sold for the three months ended in Dec. 2023 was $2,906 Mil. adidas AG's Average Total Inventories for the quarter that ended in Dec. 2023 was $5,055 Mil. adidas AG's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.57.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. adidas AG's Days Inventory for the three months ended in Dec. 2023 was 158.71.

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. adidas AG's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.96.

adidas AG Inventory Turnover Historical Data

The historical data trend for adidas AG'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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adidas AG Inventory Turnover Chart

adidas AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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2.98

2.27

2.39

2.32

2.18

adidas AG Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															0.53	0.50	0.47	0.58	0.57

adidas AG Inventory Turnover Calculation

adidas AG's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	12261.723	/ (	(6327.331	+	4934.569)	/	2 )
=	12261.723	/	5630.95
=	2.18

adidas AG's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	2906.216	/ (	(5175.027	+	4934.569)	/	2 )
=	2906.216	/	5054.798
=	0.57

adidas AG (OTCPK:ADDDF) 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.

adidas AG's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	5054.798	/	2906.216	*	365 / 4
	=	158.71

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.

adidas AG's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	5054.798	/	5246.456
	=	0.96

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.

adidas AG Inventory Turnover Related Terms

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adidas AG (adidas AG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » adidas AG (OTCPK:ADDDF) » Definitions » Inventory Turnover

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Address

Adi-Dassler-Strasse 1, Herzogenaurach, BY, DEU, 91074

Website

https://www.adidas-group.com

Adidas designs, develops, produces, and markets athletic and leisure apparel, footwear, accessories, and sports equipment. Under its eponymous brand, it produces apparel for competitive athletics, casual activewear, and casual fashion. Adidas sells its products in more than 160 countries through nearly 2,000 owned retail stores, 15,000 mono-branded franchise stores, 150,000 wholesale doors, and owned e-commerce that is available in 65 countries. The company was founded in 1949 in Germany.