ARKO (XTAE:ARKO) Inventory Turnover : 7.99 (As of Mar. 2024)

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What is ARKO 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. ARKO's Cost of Goods Sold for the three months ended in Mar. 2024 was ₪7,321 Mil. ARKO's Average Total Inventories for the quarter that ended in Mar. 2024 was ₪916 Mil. ARKO's Inventory Turnover for the quarter that ended in Mar. 2024 was 7.99.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. ARKO's Days Inventory for the three months ended in Mar. 2024 was 11.42.

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. ARKO's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.12.

ARKO Inventory Turnover Historical Data

The historical data trend for ARKO'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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ARKO Inventory Turnover Chart

ARKO Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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25.31

23.34

39.00

41.57

38.05

ARKO Quarterly Data
	Dec18	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														8.60	9.38	9.56	8.27	7.99

ARKO Inventory Turnover Calculation

ARKO'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 )
=	32887.277	/ (	(812.024	+	916.813)	/	2 )
=	32887.277	/	864.4185
=	38.05

ARKO'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 )
=	7320.696	/ (	(916.813	+	916.125)	/	2 )
=	7320.696	/	916.469
=	7.99

ARKO (XTAE:ARKO) 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.

ARKO'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
	=	916.469	/	7320.696	*	365 / 4
	=	11.42

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.

ARKO'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 )
	=	916.469	/	7582.226
	=	0.12

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.

ARKO Inventory Turnover Related Terms

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ARKO (XTAE:ARKO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » ARKO Corp (XTAE:ARKO) » Definitions » Inventory Turnover

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ARKO:USA

Address

8565 Magellan Parkway, Suite 400, Richmond, VA, USA, 23227-1150

Website

https://www.arkocorp.com

ARKO Corp operates as a holding company. The company, through its subsidiaries, owns and operates convenience stores in the United States. Some of its regional store brands include Stop, Admiral, Apple Market, BreadBox, E-Z Mart, fas mart, Li'l Cricket, and Next Door Store. Its retail store offers hot food service, beverages, cigarettes & other tobacco products, candy, salty snacks, grocery, beer, and general merchandise. ARKO operates in four segments: Retail segment, Wholesale segment, fleet fueling segment, and GPM Petroleum segment. The company derives the majority of its revenue from retail and wholesale distribution of fuel.