Founder Ordinary Shares(Fgl) Financials: Inventory Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - inventory turnover
This chart shows the historical trend of inventory turnover for FGL compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Inventory Turnover
Definition: Inventory turnover measures how quickly the company sells and replaces its inventory. A higher turnover means products are selling fast and inventory isn’t sitting idle. Slow turnover may suggest weak sales, poor demand forecasting, or obsolete inventory piling up — all of which can tie up cash unnecessarily.
Interpretation:
• In '2021', FGL's inventory turnover was 35.23, reflecting efficiency in managing inventory stock. Industry average for Engineering & Construction in '2021' stood at 7.39.
• In '2022', FGL's inventory turnover was 49.55, reflecting efficiency in managing inventory stock. The increase since '2021' reflects strengthening financial performance. Industry average for Engineering & Construction in '2022' stood at 5.27. Industry average declined by 2.12 from previous year.
• In '2023', FGL's inventory turnover was 75.44, reflecting efficiency in managing inventory stock. The increase since '2022' reflects strengthening financial performance. Industry average for Engineering & Construction in '2023' stood at 5.55. Industry average increased by 0.28 compared to previous year.
• In '2024', FGL's inventory turnover was 34.23, reflecting efficiency in managing inventory stock. The decline from '2023' may indicate some operational or financial challenges. Industry average for Engineering & Construction in '2024' stood at 7.37. Industry average increased by 1.82 compared to previous year.
Overall, FGL's inventory turnover has been volatile but showed a downward trend over the past 4 years.
Formula: Inventory Turnover = Cost of Goods Sold / Average Inventory
Good Range: Typically 4 to 12 depending on industry.