Franchetti SpA (MIL:FCH) Inventory Turnover : 1.63 (As of Dec. 2023)

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What is Franchetti SpA 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. Franchetti SpA's Cost of Goods Sold for the six months ended in Dec. 2023 was €1.33 Mil. Franchetti SpA's Average Total Inventories for the quarter that ended in Dec. 2023 was €0.81 Mil. Franchetti SpA's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.63.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Franchetti SpA's Days Inventory for the six months ended in Dec. 2023 was 111.76.

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. Franchetti SpA's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.21.

Franchetti SpA Inventory Turnover Historical Data

The historical data trend for Franchetti SpA'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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Franchetti SpA Inventory Turnover Chart

Franchetti SpA Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

9.23

14.00

14.99

4.75

Franchetti SpA Semi-Annual Data
	Dec20	Dec21	Jun22	Dec22	Jun23	Dec23
Inventory Turnover	Get a 7-Day Free Trial			-	5.60	9.70	2.89	1.63

Franchetti SpA Inventory Turnover Calculation

Franchetti SpA'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 )
=	2.561	/ (	(0.154	+	0.924)	/	2 )
=	2.561	/	0.539
=	4.75

Franchetti SpA'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 )
=	1.326	/ (	(0.7	+	0.924)	/	2 )
=	1.326	/	0.812
=	1.63

Franchetti SpA (MIL:FCH) 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.

Franchetti SpA'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
	=	0.812	/	1.326	*	365 / 2
	=	111.76

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.

Franchetti SpA'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 )
	=	0.812	/	3.951
	=	0.21

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.

Franchetti SpA Inventory Turnover Related Terms

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Franchetti SpA (MIL:FCH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Franchetti SpA (MIL:FCH) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

D0E:Germany

Address

Vi Piazzale della Vittoria 7, Arzignano, ITA, I-36071

Website

https://www.franchetti.tech

Franchetti SpA is a civil and environmental engineering company specializes in the inspection, analysis and maintenance of high-value elements, such as bridges and complex transport networks.