Forbidden Foods (ASX:FFF) Inventory Turnover : 1.78 (As of Dec. 2023)

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What is Forbidden Foods 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. Forbidden Foods's Cost of Goods Sold for the six months ended in Dec. 2023 was A$0.85 Mil. Forbidden Foods's Average Total Inventories for the quarter that ended in Dec. 2023 was A$0.48 Mil. Forbidden Foods's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.78.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Forbidden Foods's Days Inventory for the six months ended in Dec. 2023 was 102.51.

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. Forbidden Foods's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.33.

Forbidden Foods Inventory Turnover Historical Data

The historical data trend for Forbidden Foods'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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Forbidden Foods Inventory Turnover Chart

Forbidden Foods Annual Data

Trend

Jun21

Jun22

Jun23

Inventory Turnover

1.47

2.48

2.64

Forbidden Foods Semi-Annual Data
	Dec19	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Inventory Turnover	Get a 7-Day Free Trial			0.83	1.03	1.43	1.16	1.78

Forbidden Foods Inventory Turnover Calculation

Forbidden Foods's Inventory Turnover for the fiscal year that ended in Jun. 2023 is calculated as

	Inventory Turnover (A: Jun. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jun. 2023 )	/ (	(Total Inventories (A: Jun. 2022 )	+	Total Inventories (A: Jun. 2023 ))	/	count )
=	2.63	/ (	(1.475	+	0.515)	/	2 )
=	2.63	/	0.995
=	2.64

Forbidden Foods'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 )
=	0.851	/ (	(0.515	+	0.441)	/	2 )
=	0.851	/	0.478
=	1.78

Forbidden Foods (ASX:FFF) 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.

Forbidden Foods'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
	=	0.478	/	0.851	*	365 / 2
	=	102.51

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.

Forbidden Foods'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 )
	=	0.478	/	1.463
	=	0.33

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.

Forbidden Foods Inventory Turnover Related Terms

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Forbidden Foods (ASX:FFF) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Forbidden Foods Ltd (ASX:FFF) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

16/663 Victoria Street, Abbotsford, Melbourne, VIC, AUS, 3067

Website

https://www.forbiddenfoods.com.au

Forbidden Foods Ltd is an Australian owned and managed food company specialising in the sourcing and development of health focused food products for retail and food service in Australia and abroad.

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