Franchise Brands (LSE:FRAN) Inventory Turnover : 8.31 (As of Jun. 2023)

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What is Franchise 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. Franchise Brands's Cost of Goods Sold for the six months ended in Jun. 2023 was £40.8 Mil. Franchise Brands's Average Total Inventories for the quarter that ended in Jun. 2023 was £4.9 Mil. Franchise Brands's Inventory Turnover for the quarter that ended in Jun. 2023 was 8.31.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Franchise Brands's Days Inventory for the six months ended in Jun. 2023 was 21.97.

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 Brands's Inventory-to-Revenue for the quarter that ended in Jun. 2023 was 0.07.

Franchise Brands Inventory Turnover Historical Data

The historical data trend for Franchise 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.

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Franchise Brands Inventory Turnover Chart

Franchise Brands Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Inventory Turnover

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89.90

65.87

43.43

44.15

43.62

Franchise Brands Semi-Annual Data
	Dec13	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
Inventory Turnover	Get a 7-Day Free Trial														22.10	20.35	18.92	17.52	8.31

Franchise Brands Inventory Turnover Calculation

Franchise Brands'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 )
=	63.187	/ (	(0.908	+	1.989)	/	2 )
=	63.187	/	1.4485
=	43.62

Franchise Brands'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: Dec. 2022 )	+	Total Inventories (Q: Jun. 2023 ))	/	count )
=	40.795	/ (	(1.989	+	7.835)	/	2 )
=	40.795	/	4.912
=	8.31

Franchise Brands (LSE:FRAN) 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 Brands's Days Inventory for the six 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
	=	4.912	/	40.795	*	365 / 2
	=	21.97

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 Brands'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 )
	=	4.912	/	69.751
	=	0.07

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 Brands Inventory Turnover Related Terms

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Franchise Brands (LSE:FRAN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Franchise Brands PLC (LSE:FRAN) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

Ashwood Court, Springwood Close, Tytherington Business Park, Macclesfield, GBR, SK10 2XF

Website

https://www.franchisebrands.co.uk

Franchise Brands PLC is a holding company engaged in franchising and related activities. Its brands associated with the company are metro rod, chips away, barking mad, Oven clean, Metro Plumb, Willow Pumps, and Filta. Its operating segments are B2B, Filta International, B2C, Azura, and Other operations and the majority of the revenue comes from the B2B segment.

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