Little Green Pharma (ASX:LGP) Inventory Turnover : 0.75 (As of Sep. 2023)

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What is Little Green Pharma 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. Little Green Pharma's Cost of Goods Sold for the six months ended in Sep. 2023 was A$7.43 Mil. Little Green Pharma's Average Total Inventories for the quarter that ended in Sep. 2023 was A$9.92 Mil. Little Green Pharma's Inventory Turnover for the quarter that ended in Sep. 2023 was 0.75.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Little Green Pharma's Days Inventory for the six months ended in Sep. 2023 was 243.42.

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. Little Green Pharma's Inventory-to-Revenue for the quarter that ended in Sep. 2023 was 0.78.

Little Green Pharma Inventory Turnover Historical Data

The historical data trend for Little Green Pharma'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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Little Green Pharma Inventory Turnover Chart

Little Green Pharma Annual Data

Trend

Jun19

Jun20

Jun21

Mar23

Inventory Turnover

1.14

0.29

0.94

Little Green Pharma Semi-Annual Data
	Jun20	Dec20	Jun21	Dec21	Mar23	Sep23
Inventory Turnover	Get a 7-Day Free Trial			0.73	-	0.29	-	0.75

Little Green Pharma Inventory Turnover Calculation

Little Green Pharma's Inventory Turnover for the fiscal year that ended in Mar. 2023 is calculated as

	Inventory Turnover (A: Mar. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2023 )	/ (	(Total Inventories (A: Jun. 2021 )	+	Total Inventories (A: Mar. 2023 ))	/	count )
=	7.59	/ (	(7.254	+	8.909)	/	2 )
=	7.59	/	8.0815
=	0.94

Little Green Pharma's Inventory Turnover for the quarter that ended in Sep. 2023 is calculated as

	Inventory Turnover (Q: Sep. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2023 )	/ (	(Total Inventories (Q: Mar. 2023 )	+	Total Inventories (Q: Sep. 2023 ))	/	count )
=	7.434	/ (	(8.909	+	10.922)	/	2 )
=	7.434	/	9.9155
=	0.75

Little Green Pharma (ASX:LGP) 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.

Little Green Pharma's Days Inventory for the six months ended in Sep. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2023 )	/	Cost of Goods Sold (Q: Sep. 2023 )	*	Days in Period
	=	9.9155	/	7.434	*	365 / 2
	=	243.42

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.

Little Green Pharma's Inventory to Revenue for the quarter that ended in Sep. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	9.9155	/	12.651
	=	0.78

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.

Little Green Pharma Inventory Turnover Related Terms

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Little Green Pharma (ASX:LGP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Little Green Pharma Ltd (ASX:LGP) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

66 Kings Park Road, Level 2, Suite 2, West Perth, Perth, WA, AUS, 6005

Website

https://www.littlegreenpharma.com

Little Green Pharma Ltd is engaged in the vertically integrated medicinal cannabis business. The business activities of the company include cultivation, production, research and development, manufacturing, and distribution of medicinal cannabis products. The company's two key types of products available at Little Green Pharma are oils (which are ingested) and flowers (which are usually inhaled through vaporizing). The company offers LGP-branded medicinal cannabis oil products in the Australian and European markets.

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