Merus Labs International (Merus Labs International) Inventory Turnover : 0.55 (As of Mar. 2017)

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What is Merus Labs International 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. Merus Labs International's Cost of Goods Sold for the three months ended in Mar. 2017 was $6.29 Mil. Merus Labs International's Average Total Inventories for the quarter that ended in Mar. 2017 was $11.46 Mil. Merus Labs International's Inventory Turnover for the quarter that ended in Mar. 2017 was 0.55.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Merus Labs International's Days Inventory for the three months ended in Mar. 2017 was 166.13.

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. Merus Labs International's Inventory-to-Revenue for the quarter that ended in Mar. 2017 was 0.68.

Merus Labs International Inventory Turnover Historical Data

The historical data trend for Merus Labs International'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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Merus Labs International Inventory Turnover Chart

Merus Labs International Annual Data

Trend

Sep07

Sep08

Sep09

Sep10

Sep11

Sep12

Sep13

Sep14

Sep15

Sep16

Inventory Turnover

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0.40

1.41

2.33

1.52

3.08

Merus Labs International Quarterly Data
	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17
Inventory Turnover	Get a 7-Day Free Trial															0.82	0.92	0.91	0.58	0.55

Merus Labs International Inventory Turnover Calculation

Merus Labs International's Inventory Turnover for the fiscal year that ended in Sep. 2016 is calculated as

	Inventory Turnover (A: Sep. 2016 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Sep. 2016 )	/ (	(Total Inventories (A: Sep. 2015 )	+	Total Inventories (A: Sep. 2016 ))	/	count )
=	22.839	/ (	(5.126	+	9.689)	/	2 )
=	22.839	/	7.4075
=	3.08

Merus Labs International's Inventory Turnover for the quarter that ended in Mar. 2017 is calculated as

	Inventory Turnover (Q: Mar. 2017 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2017 )	/ (	(Total Inventories (Q: Dec. 2016 )	+	Total Inventories (Q: Mar. 2017 ))	/	count )
=	6.294	/ (	(11.387	+	11.531)	/	2 )
=	6.294	/	11.459
=	0.55

Merus Labs International (NAS:MSLI) 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.

Merus Labs International's Days Inventory for the three months ended in Mar. 2017 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2017 )	/	Cost of Goods Sold (Q: Mar. 2017 )	*	Days in Period
	=	11.459	/	6.294	*	365 / 4
	=	166.13

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.

Merus Labs International's Inventory to Revenue for the quarter that ended in Mar. 2017 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2017 )	/	Revenue (Q: Mar. 2017 )
	=	11.459	/	16.918
	=	0.68

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.

Merus Labs International Inventory Turnover Related Terms

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Merus Labs International (Merus Labs International) Business Description

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Address

Website

http://www.meruslabs.com

Merus Labs International Inc was incorporated on October 1, 2012 in British Columbia. The Company is a specialty pharmaceutical company. It acquires prescription medicines in various categories which include on patent but at maturity stage of product life cycle; branded generics; under promoted products; Niche market pharmaceuticals; and products with annual sales below critical threshold for large pharma. The Company competes with multinational pharmaceutical development corporations to small, single product companies that may limit their activities to a particular therapeutic area or region or territory.

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