West Fraser Timber Co.Ltd (TSX:WFG) Inventory Turnover : 1.20 (As of Mar. 2024)

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What is West Fraser Timber Co.Ltd 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. West Fraser Timber Co.Ltd's Cost of Goods Sold for the three months ended in Mar. 2024 was C$1,513 Mil. West Fraser Timber Co.Ltd's Average Total Inventories for the quarter that ended in Mar. 2024 was C$1,256 Mil. West Fraser Timber Co.Ltd's Inventory Turnover for the quarter that ended in Mar. 2024 was 1.20.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. West Fraser Timber Co.Ltd's Days Inventory for the three months ended in Mar. 2024 was 75.76.

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. West Fraser Timber Co.Ltd's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.57.

West Fraser Timber Co.Ltd Inventory Turnover Historical Data

The historical data trend for West Fraser Timber Co.Ltd'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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West Fraser Timber Co.Ltd Inventory Turnover Chart

West Fraser Timber Co.Ltd Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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4.85

4.43

5.67

5.06

4.94

West Fraser Timber Co.Ltd 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															1.15	1.15	1.32	1.33	1.20

West Fraser Timber Co.Ltd Inventory Turnover Calculation

West Fraser Timber Co.Ltd'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 )
=	6285.396	/ (	(1401.972	+	1141.702)	/	2 )
=	6285.396	/	1271.837
=	4.94

West Fraser Timber Co.Ltd'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 )
=	1513.325	/ (	(1141.702	+	1371.197)	/	2 )
=	1513.325	/	1256.4495
=	1.20

West Fraser Timber Co.Ltd (TSX:WFG) 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.

West Fraser Timber Co.Ltd'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
	=	1256.4495	/	1513.325	*	365 / 4
	=	75.76

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.

West Fraser Timber Co.Ltd'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 )
	=	1256.4495	/	2202.307
	=	0.57

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.

West Fraser Timber Co.Ltd Inventory Turnover Related Terms

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West Fraser Timber Co.Ltd (TSX:WFG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » West Fraser Timber Co.Ltd (TSX:WFG) » Definitions » Inventory Turnover

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Traded in Other Exchanges

WFG:USA WFC:Germany WFC:Germany

Address

c/o West Fraser Group, 858 Beatty Street, Vancouver, BC, CAN, V6B 1C1

Website

https://www.westfraser.com

West Fraser Timber is a softwood lumber company that also produces wood panels and pulp products. The company produces its wood products globally, with lumber mills in British Columbia, Alberta, Europe, and the southeastern United States. Following its acquisition of Norbord in 2021, West Fraser is now one of the largest oriented strand board, or OSB, producers in the world.

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