Medifast (Medifast) Inventory-to-Revenue : 0.30 (As of Dec. 2023)

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What is Medifast Inventory-to-Revenue?

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. Medifast's Average Total Inventories for the quarter that ended in Dec. 2023 was $56 Mil. Medifast's Revenue for the three months ended in Dec. 2023 was $191 Mil. Medifast's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.30.

Medifast's Inventory-to-Revenue for the quarter that ended in Dec. 2023 increased from Sep. 2023 (0.27) to Sep. 2023 (0.30)

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Medifast's Days Inventory for the three months ended in Dec. 2023 was 103.68.

Inventory Turnover measures how fast the company turns over its inventory within a year. Medifast's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.88.

Medifast Inventory-to-Revenue Historical Data

The historical data trend for Medifast's Inventory-to-Revenue 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.

* Premium members only.

Medifast Inventory-to-Revenue Chart

Medifast Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory-to-Revenue

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0.06

0.08

0.09

0.08

Medifast Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory-to-Revenue	Get a 7-Day Free Trial															0.39	0.31	0.28	0.27	0.30

Competitive Comparison of Medifast's Inventory-to-Revenue

For the Personal Services subindustry, Medifast's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Medifast's Inventory-to-Revenue Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Medifast's Inventory-to-Revenue distribution charts can be found below:

* The bar in red indicates where Medifast's Inventory-to-Revenue falls into.

Medifast Inventory-to-Revenue Calculation

Medifast's Inventory-to-Revenue for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory-to-Revenue (A: Dec. 2023 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )	/	Revenue (A: Dec. 2023 )
=	( (118.856	+	54.591)	/	2 )	/	1072.054
=	86.7235					/	1072.054
=	0.08

Medifast's Inventory-to-Revenue for the quarter that ended in Dec. 2023 is calculated as

	Inventory-to-Revenue (Q: Dec. 2023 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )	/	Revenue (Q: Dec. 2023 )
=	( (58.227	+	54.591)	/	2 )	/	191.015
=	56.409					/	191.015
=	0.30

Medifast (NYSE:MED) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.

More Related Terms:

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Medifast's Days Inventory for the three 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
	=	56.409	/	49.646	*	365 / 4
	=	103.68

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

Medifast's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Dec. 2023 )	/	Average Total Inventories (Q: Dec. 2023 )
	=	49.646	/	56.409
	=	0.88

Medifast Inventory-to-Revenue Related Terms

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Medifast (Medifast) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Personal Services » Medifast Inc (NYSE:MED) » Definitions » Inventory-to-Revenue

Comparable Companies

Traded in Other Exchanges

MED:Mexico MDF:Germany MDF:Germany

Address

100 International Drive, Baltimore, MD, USA, 21202

Website

https://www.medifastinc.com

Medifast Inc is a United states based company that produces, distributes and sells products concerning weight loss, weight management, and healthy living. The company generates its revenue from point of sale transactions executed over an e-commerce platform for weight loss, weight management, and other consumable health and nutritional products.

Executives

Jeffrey J Brown	director	19900 MACARTHUR BLVD, SUITE 570, IRVINE CA 92612
Andrea B Thomas	director	C/O MEDIFAST, INC., 100 INTERNATIONAL DRIVE, BALTIMORE MD 21202
Michael A. Hoer	director	MEDIFAST, INC., 100 INTERNATIONAL DRIVE, 18TH FLOOR, BALTIMORE MD 21202
Scott Schlackman	director	3600 CRONDALL LANE, OWINGS MILLS MD 21117
Hallquist Constance J.	director	3600 CRONDALL LANE, OWINGS MILLS MD 21117
Elizabeth A. Geary	director	C/O MEDIFAST, INC., 100 INTERNATIONAL DRIVE, BALTIMORE MD 21202
Daniel R Chard	director, officer: Chief Executive Officer	NU SKIN ENTERPRISES, INC., 75 WEST CENTER STREET, PROVO UT 84601
Jonathan Barrett Mackenzie	officer: VP, Finance & CAO	100 INTERNATIONAL DRIVE, BALTIMORE MD 21202
Kevin G Byrnes	director	C/O MEDIFAST, INC., 3600 CRONDALL LANE, OWINGS MILLS MD 21117
Michael C Macdonald	director	C/O MEDIFAST, INC., 3600 CRONDALL LANE, OWINGS MILLS MD 21117
James P. Maloney	officer: Chief Financial Officer	415 HOLIDAY DRIVE, PITTSBURGH PA 15220
Ming Xian	director	MEDIFAST, INC., 100 INTERNATIONAL DRIVE, 18TH FLOOR, BALTIMORE MD 21202
Carl E Sassano	director	C/O MEDIFAST, INC., 3600 CRONDALL LANE, OWINGS MILLS MD 21117
Joseph P Kelleman	officer: (Interim) CFO	3600 CRONDALL LANE, OWINGS MILLS MD 21117
Timothy G Robinson	officer: Chief Financial Officer	C/O MEDIFAST, INC., 3600 CRONDALL LANE, OWINGS MILLS MD 21117