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Famous Brands (JSE:FBR) Inventory Turnover : 4.28 (As of Feb. 2024)


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What is Famous Brands 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. Famous Brands's Cost of Goods Sold for the six months ended in Feb. 2024 was R2,382 Mil. Famous Brands's Average Total Inventories for the quarter that ended in Feb. 2024 was R557 Mil. Famous Brands's Inventory Turnover for the quarter that ended in Feb. 2024 was 4.28.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Famous Brands's Days Inventory for the six months ended in Feb. 2024 was 42.64.

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. Famous Brands's Inventory-to-Revenue for the quarter that ended in Feb. 2024 was 0.14.

Famous Brands Inventory Turnover Historical Data

The historical data trend for Famous Brands'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.

Famous Brands Inventory Turnover Chart

Famous Brands Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.72 6.86 9.35 9.09 8.40

Famous Brands Semi-Annual Data
Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24
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 4.58 4.35 4.43 4.21 4.28

Famous Brands Inventory Turnover Calculation

Famous Brands's Inventory Turnover for the fiscal year that ended in Feb. 2024 is calculated as

Inventory Turnover (A: Feb. 2024 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Feb. 2024 ) / ((Total Inventories (A: Feb. 2023 ) + Total Inventories (A: Feb. 2024 )) / count )
=4639.859 / ((531.211 + 572.906) / 2 )
=4639.859 / 552.0585
=8.40

Famous Brands's Inventory Turnover for the quarter that ended in Feb. 2024 is calculated as

Inventory Turnover (Q: Feb. 2024 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Feb. 2024 ) / ((Total Inventories (Q: Aug. 2023 ) + Total Inventories (Q: Feb. 2024 )) / count )
=2382.087 / ((540.29 + 572.906) / 2 )
=2382.087 / 556.598
=4.28

* 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.

Famous Brands  (JSE:FBR) 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.

Famous Brands's Days Inventory for the six months ended in Feb. 2024 is calculated as:

Days Inventory =Average Total Inventories (Q: Feb. 2024 )/Cost of Goods Sold (Q: Feb. 2024 )*Days in Period
=556.598/2382.087*365 / 2
=42.64

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.

Famous Brands's Inventory to Revenue for the quarter that ended in Feb. 2024 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Feb. 2024 ) / Revenue (Q: Feb. 2024 )
=556.598 / 4084.264
=0.14

* 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.

Famous Brands Inventory Turnover Related Terms

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Famous Brands (JSE:FBR) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Famous Brands Ltd (JSE:FBR) » Definitions » Inventory Turnover
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Traded in Other Exchanges
N/A
Address
478 James Crescent, P.O. Box 2884, Halfway House, Midrand, GT, ZAF, 1685
Website
https://www.famousbrands.co.za
Famous Brands Ltd owns a portfolio of roughly 30 restaurant chains in Africa and the United Kingdom. Its biggest brands include Steers, Wimpy, Debonairs Pizza, Fishaways, Mr Biggs, and Mugg & Bean. Franchisees operate all of the company's restaurants. Most of the company's revenue comes from its supply chain segment, which is responsible for manufacturing restaurant items and delivering the products to the company's franchisees and other customers. More than three fourths of Famous Brands' restaurants are in South Africa.