Farmer Bros Co (Farmer Bros Co) Inventory Turnover : 0.97 (As of Dec. 2023)

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What is Farmer Bros Co 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. Farmer Bros Co's Cost of Goods Sold for the three months ended in Dec. 2023 was $53.3 Mil. Farmer Bros Co's Average Total Inventories for the quarter that ended in Dec. 2023 was $54.9 Mil. Farmer Bros Co's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.97.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Farmer Bros Co's Days Inventory for the three months ended in Dec. 2023 was 93.88.

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. Farmer Bros Co's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.61.

Farmer Bros Co Inventory Turnover Historical Data

The historical data trend for Farmer Bros Co'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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Farmer Bros Co Inventory Turnover Chart

Farmer Bros Co Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Inventory Turnover

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4.33

4.68

2.30

2.69

4.22

Farmer Bros Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															0.65	1.15	-1.02	0.99	0.97

Farmer Bros Co Inventory Turnover Calculation

Farmer Bros Co'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 )
=	225.351	/ (	(57.568	+	49.276)	/	2 )
=	225.351	/	53.422
=	4.22

Farmer Bros Co'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: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	53.344	/ (	(54.291	+	55.469)	/	2 )
=	53.344	/	54.88
=	0.97

Farmer Bros Co (NAS:FARM) 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.

Farmer Bros Co'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
	=	54.88	/	53.344	*	365 / 4
	=	93.88

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.

Farmer Bros Co'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 )
	=	54.88	/	89.453
	=	0.61

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.

Farmer Bros Co Inventory Turnover Related Terms

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Farmer Bros Co (Farmer Bros Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Farmer Bros Co (NAS:FARM) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

FB1:Germany

Address

1912 Farmer Brothers Drive, Northlake, TX, USA, 76262

Website

https://www.farmerbros.com

Farmer Bros Co is engaged in manufacturing, wholesaling, and distributing coffee, tea, and culinary products to food-service establishments and retailers in the United States. The company's customers include restaurants, hotels, offices, casinos, convenience stores, healthcare facilities, and other food-service providers. The company's product categories consist of roast and ground coffee, frozen liquid coffee, flavoured and unflavored iced and hot teas, culinary products, spices, and other beverages including cappuccino, cocoa, granitas, and ready-to-drink iced coffee. The products are sold under the brands of Farmer Brothers, Artisan Collection by Farmer Brothers, Superior, Metropolitan, and China Mist.

Executives

David Pace	director
Brad Bollner	officer: Interim CFO	1912 FARMER BROTHERS DRIVE, NORTHLAKE TX 76262
Bradley Louis Radoff	director	2727 KIRBY DRIVE, UNIT 29L, HOUSTON TX 77098
Thomas E. Bauer	officer: Vice President, Head of DSD	1912 FARMER BROTHERS DRIVE, NORTHLAKE TX 76262
Moore John E. Iii	officer: Vice President, Head of Coffee	1912 FARMER BROTHERS DRIVE, NORTHLAKE TX 76262
Moragne Maurice S.j.	officer: Chief Sales Officer	1912 FARMER BROTHERS DRIVE, NORTHLAKE TX 76262
Family Foundation Radoff	other: See Footnote 1	2727 KIRBY DRIVE, UNIT 29L, HOUSTON TX 77098
Todd E Diener	other: See Footnote 1
Jcp Investment Management, Llc	other: See Footnote 1	1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
Jcp Investment Partnership, Lp	other: See Footnote 1	1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
Jcp Investment Partners, Lp	other: See Footnote 1	1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
Jcp Investment Holdings, Llc	other: See Footnote 1	1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
James C Pappas	other: See Footnote 1	1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
22nw Gp, Inc.	10 percent owner	1455 NW LEARY WAY, SUITE 400, SEATTLE WA 98107
22nw Fund, Lp	10 percent owner	1455 NW LEARY WAY, SUITE 400, SEATTLE WA 98107