FAT Brands (STU:5PN) Inventory Turnover : 12.10 (As of Mar. 2024)

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What is FAT 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. FAT Brands's Cost of Goods Sold for the three months ended in Mar. 2024 was €102.7 Mil. FAT Brands's Average Total Inventories for the quarter that ended in Mar. 2024 was €8.5 Mil. FAT Brands's Inventory Turnover for the quarter that ended in Mar. 2024 was 12.10.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. FAT Brands's Days Inventory for the three months ended in Mar. 2024 was 7.54.

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. FAT Brands's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.06.

FAT Brands Inventory Turnover Historical Data

The historical data trend for FAT 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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FAT Brands Inventory Turnover Chart

FAT Brands Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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7.47

35.51

34.42

FAT Brands Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															10.11	9.08	10.90	8.76	12.10

FAT Brands Inventory Turnover Calculation

FAT Brands'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 )
=	259.407	/ (	(6.537	+	8.534)	/	2 )
=	259.407	/	7.5355
=	34.42

FAT Brands's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	102.711	/ (	(8.534	+	8.449)	/	2 )
=	102.711	/	8.4915
=	12.10

FAT Brands (STU:5PN) 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.

FAT Brands's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	8.4915	/	102.711	*	365 / 4
	=	7.54

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.

FAT Brands's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	8.4915	/	139.81
	=	0.06

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.

FAT Brands Inventory Turnover Related Terms

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FAT Brands (STU:5PN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » FAT Brands Inc (STU:5PN) » Definitions » Inventory Turnover

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Address

9720 Wilshire Boulevard, Suite 500, Beverly Hills, CA, USA, 90212

Website

https://www.fatbrands.com

FAT Brands Inc is a multi-brand restaurant franchising company. It develops, markets, acquires and manages quick service, fast casual, casual dining and polished casual dining restaurant concepts around the world. The company operates as a franchisor of restaurants, where the company generally does not own or operate the restaurant locations but rather generates revenue by charging franchisees an initial franchise fee as well as ongoing royalties. For some of the company's brands, it also directly owns and operates restaurant locations. The primary sources of revenue are the sale of food and beverages at company restaurants and the collection of royalties, franchise fees and advertising revenue from sales of food and beverages at franchised restaurants.

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