Franchise Group (FRA:3HC) Inventory Turnover : 0.83 (As of Jun. 2023)

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What is Franchise Group 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. Franchise Group's Cost of Goods Sold for the three months ended in Jun. 2023 was €584 Mil. Franchise Group's Average Total Inventories for the quarter that ended in Jun. 2023 was €699 Mil. Franchise Group's Inventory Turnover for the quarter that ended in Jun. 2023 was 0.83.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Franchise Group's Days Inventory for the three months ended in Jun. 2023 was 109.31.

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. Franchise Group's Inventory-to-Revenue for the quarter that ended in Jun. 2023 was 0.73.

Franchise Group Inventory Turnover Historical Data

The historical data trend for Franchise Group'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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Franchise Group Inventory Turnover Chart

Franchise Group Annual Data

Trend

Apr13

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Dec20

Dec21

Dec22

Inventory Turnover

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3.84

4.03

3.70

Franchise Group Quarterly Data
	Jul18	Oct18	Jan19	Apr19	Jul19	Oct19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Inventory Turnover	Get a 7-Day Free Trial															0.78	0.79	0.85	0.89	0.83

Franchise Group Inventory Turnover Calculation

Franchise Group's Inventory Turnover for the fiscal year that ended in Dec. 2022 is calculated as

	Inventory Turnover (A: Dec. 2022 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2022 )	/ (	(Total Inventories (A: Dec. 2021 )	+	Total Inventories (A: Dec. 2022 ))	/	count )
=	2391.476	/ (	(595.755	+	695.578)	/	2 )
=	2391.476	/	645.6665
=	3.70

Franchise Group's Inventory Turnover for the quarter that ended in Jun. 2023 is calculated as

	Inventory Turnover (Q: Jun. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jun. 2023 )	/ (	(Total Inventories (Q: Mar. 2023 )	+	Total Inventories (Q: Jun. 2023 ))	/	count )
=	583.911	/ (	(709.738	+	689.253)	/	2 )
=	583.911	/	699.4955
=	0.83

Franchise Group (FRA:3HC) 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.

Franchise Group's Days Inventory for the three months ended in Jun. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2023 )	/	Cost of Goods Sold (Q: Jun. 2023 )	*	Days in Period
	=	699.4955	/	583.911	*	365 / 4
	=	109.31

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.

Franchise Group's Inventory to Revenue for the quarter that ended in Jun. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2023 )	/	Revenue (Q: Jun. 2023 )
	=	699.4955	/	958.707
	=	0.73

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.

Franchise Group Inventory Turnover Related Terms

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Franchise Group (FRA:3HC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Franchise Group Inc (FRA:3HC) » Definitions » Inventory Turnover

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Traded in Other Exchanges

N/A

Address

109 Innovation Court, Suite J, Delaware, OH, USA, 43015

Website

https://www.franchisegrp.com

Franchise Group Inc is a personal services company that provides retail federal and state income tax preparation services and related tax settlement products. The vast majority of these offices operate in the United States under the Liberty Tax Service and SiempreTax+ brand names. Liberty Tax also provides online do-it-yourself tax programs within the U.S. The sale of financial products and tax preparation service fees also contribute to sizable percentages of the company's total income. Liberty Tax also operates a smaller portfolio of wholly-owned company offices. The company's reportable segments are Vitamin Shoppe, Pet Supplies Plus, Badcock, American Freight, Buddy's and Sylvan.

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