Henkel AG KGaA (XTER:HEN3) Inventory Turnover : 2.17 (As of Dec. 2023)

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What is Henkel AG KGaA 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. Henkel AG KGaA's Cost of Goods Sold for the six months ended in Dec. 2023 was €5,691 Mil. Henkel AG KGaA's Average Total Inventories for the quarter that ended in Dec. 2023 was €2,626 Mil. Henkel AG KGaA's Inventory Turnover for the quarter that ended in Dec. 2023 was 2.17.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Henkel AG KGaA's Days Inventory for the six months ended in Dec. 2023 was 84.20.

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. Henkel AG KGaA's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.25.

Henkel AG KGaA Inventory Turnover Historical Data

The historical data trend for Henkel AG KGaA'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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Henkel AG KGaA Inventory Turnover Chart

Henkel AG KGaA Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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4.99

4.74

4.60

4.49

4.22

Henkel AG KGaA Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															2.23	2.25	2.13	2.06	2.17

Henkel AG KGaA Inventory Turnover Calculation

Henkel AG KGaA'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 )
=	11853	/ (	(3180	+	2444)	/	2 )
=	11853	/	2812
=	4.22

Henkel AG KGaA'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: Jun. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	5691	/ (	(2807	+	2444)	/	2 )
=	5691	/	2625.5
=	2.17

Henkel AG KGaA (XTER:HEN3) 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.

Henkel AG KGaA's Days Inventory for the six 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
	=	2625.5	/	5691	*	365 / 2
	=	84.20

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.

Henkel AG KGaA'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 )
	=	2625.5	/	10588
	=	0.25

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.

Henkel AG KGaA Inventory Turnover Related Terms

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Henkel AG KGaA (XTER:HEN3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Henkel AG & Co KGaA (XTER:HEN3) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

HENOY:USA HENOF:USA HENKY:USA 1HEN:Italy HEN3:Italy HEN3d:UK 0IZC:UK 0IZ8:UK HEN:Austria

Address

Henkelstrasse 67, Duesseldorf, NW, DEU, 40589

Website

https://www.henkel.com

Two distinct customer groups constitute Henkel. The consumer segment (around 50% of consolidated 2022 sales) is laundry and home care, including the Persil and Purex laundry detergent brands, and beauty care, including the Schwarzkopf brand in hair care and the Dial brand in hand soap. The adhesives technologies segment makes up the remaining 50% of sales. Sales from Europe accounted for 42% of the firm's consolidated total in 2022, while Asia-Pacific and North America accounted for 17% and 27%, respectively.

Executives

Wolfgang König	Board of Directors
Mark Dorn	Board of Directors

Henkel AG KGaA (XTER:HEN3) Headlines

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