PZ Cussons (LSE:PZC) Inventory Turnover : 2.35 (As of Nov. 2023)

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What is PZ Cussons 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. PZ Cussons's Cost of Goods Sold for the six months ended in Nov. 2023 was £240.0 Mil. PZ Cussons's Average Total Inventories for the quarter that ended in Nov. 2023 was £102.2 Mil. PZ Cussons's Inventory Turnover for the quarter that ended in Nov. 2023 was 2.35.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. PZ Cussons's Days Inventory for the six months ended in Nov. 2023 was 77.71.

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. PZ Cussons's Inventory-to-Revenue for the quarter that ended in Nov. 2023 was 0.37.

PZ Cussons Inventory Turnover Historical Data

The historical data trend for PZ Cussons'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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PZ Cussons Inventory Turnover Chart

PZ Cussons Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

Inventory Turnover

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2.76

3.05

3.74

3.60

3.55

PZ Cussons Semi-Annual Data
	May14	Nov14	May15	Nov15	May16	Nov16	May17	Nov17	May18	Nov18	May19	Nov19	May20	Nov20	May21	Nov21	May22	Nov22	May23	Nov23
Inventory Turnover	Get a 7-Day Free Trial															1.74	1.73	1.78	1.50	2.35

PZ Cussons Inventory Turnover Calculation

PZ Cussons's Inventory Turnover for the fiscal year that ended in May. 2023 is calculated as

	Inventory Turnover (A: May. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: May. 2023 )	/ (	(Total Inventories (A: May. 2022 )	+	Total Inventories (A: May. 2023 ))	/	count )
=	399	/ (	(111.8	+	112.9)	/	2 )
=	399	/	112.35
=	3.55

PZ Cussons's Inventory Turnover for the quarter that ended in Nov. 2023 is calculated as

	Inventory Turnover (Q: Nov. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Nov. 2023 )	/ (	(Total Inventories (Q: May. 2023 )	+	Total Inventories (Q: Nov. 2023 ))	/	count )
=	240	/ (	(112.9	+	91.5)	/	2 )
=	240	/	102.2
=	2.35

PZ Cussons (LSE:PZC) 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.

PZ Cussons's Days Inventory for the six months ended in Nov. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Nov. 2023 )	/	Cost of Goods Sold (Q: Nov. 2023 )	*	Days in Period
	=	102.2	/	240	*	365 / 2
	=	77.71

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.

PZ Cussons's Inventory to Revenue for the quarter that ended in Nov. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Nov. 2023 )	/	Revenue (Q: Nov. 2023 )
	=	102.2	/	277.1
	=	0.37

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.

PZ Cussons Inventory Turnover Related Terms

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PZ Cussons (LSE:PZC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » PZ Cussons PLC (LSE:PZC) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

PZCUY:USA PZCl:UK 1ZQ:Germany

Address

Manchester Business Park, 3500 Aviator Way, Manchester, GBR, M22 5TG

Website

https://www.pzcussons.com

PZ Cussons PLC is a household and personal-care company. Its main business categories are personal care and beauty, home care, food and nutrition, and electricals. Its key geographies are Africa (Ghana, Nigeria, and Kenya); Europe (the UK, Poland, and Greece); Asia (Australia, Thailand, and Indonesia); and the US The personal care and beauty segment offers shower gels, soaps, and haircare products under brands like Cussons Baby and Carex. Thu home care division offers dishwashers and laundry detergents under the Zip, Radiant, and Morning Fresh brands. The food and nutrition division provides organic yogurts, olive oil, and baby food under the Minerva and Rafferty's Garden brands. The electrical division offers electrical household items such as audiovisual products and air conditioners.