RFG Holdings (JSE:RFG) Inventory Turnover : 1.47 (As of Mar. 2024)

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What is RFG Holdings 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. RFG Holdings's Cost of Goods Sold for the six months ended in Mar. 2024 was R2,900 Mil. RFG Holdings's Average Total Inventories for the quarter that ended in Mar. 2024 was R1,971 Mil. RFG Holdings's Inventory Turnover for the quarter that ended in Mar. 2024 was 1.47.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. RFG Holdings's Days Inventory for the six months ended in Mar. 2024 was 124.05.

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. RFG Holdings's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.51.

RFG Holdings Inventory Turnover Historical Data

The historical data trend for RFG Holdings'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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RFG Holdings Inventory Turnover Chart

RFG Holdings Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Inventory Turnover

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3.40

3.60

3.53

3.79

3.61

RFG Holdings Semi-Annual Data
	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															1.57	1.64	1.53	1.59	1.47

RFG Holdings Inventory Turnover Calculation

RFG Holdings's Inventory Turnover for the fiscal year that ended in Sep. 2023 is calculated as

	Inventory Turnover (A: Sep. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Sep. 2023 )	/ (	(Total Inventories (A: Sep. 2022 )	+	Total Inventories (A: Sep. 2023 ))	/	count )
=	5908.487	/ (	(1571.614	+	1697.312)	/	2 )
=	5908.487	/	1634.463
=	3.61

RFG Holdings's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	2900.47	/ (	(1697.312	+	2245.604)	/	2 )
=	2900.47	/	1971.458
=	1.47

RFG Holdings (JSE:RFG) 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.

RFG Holdings's Days Inventory for the six months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	1971.458	/	2900.47	*	365 / 2
	=	124.05

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.

RFG Holdings's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	1971.458	/	3897.784
	=	0.51

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.

RFG Holdings Inventory Turnover Related Terms

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RFG Holdings (JSE:RFG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » RFG Holdings Ltd (JSE:RFG) » Definitions » Inventory Turnover

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Traded in Other Exchanges

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Address

Pniel Road, Groot Drakenstein, Cape Town, WC, ZAF, 7680

Website

https://www.rfg.com

RFG Holdings Ltd is a South Africa based company engaged in supplying fresh, frozen, and convenience meal solutions. The product range offered by the company includes canned fruit, jam, vegetable and meat products, bottled salads, fruit juices and purees, fresh ready meals, pies, pastries, bakery, and dairy products. The business operates under two divisions namely, Long life foods and Fresh products. Long life foods division, which includes canned fruits and vegetables, jams, bottled salads, fruit juice, fruit purees, baby food, and canned meat, contributes majorly to the group's revenue. The company's reportable segments include, Regional which is the key revenue generating segment, and International.