Medical Marijuana (Medical Marijuana) Inventory Turnover : 2.23 (As of Dec. 2017)

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What is Medical Marijuana 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. Medical Marijuana's Cost of Goods Sold for the six months ended in Dec. 2017 was $8.11 Mil. Medical Marijuana's Average Total Inventories for the quarter that ended in Dec. 2017 was $3.63 Mil. Medical Marijuana's Inventory Turnover for the quarter that ended in Dec. 2017 was 2.23.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Medical Marijuana's Days Inventory for the six months ended in Dec. 2017 was 81.72.

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. Medical Marijuana's Inventory-to-Revenue for the quarter that ended in Dec. 2017 was 0.14.

Medical Marijuana Inventory Turnover Historical Data

The historical data trend for Medical Marijuana'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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Medical Marijuana Inventory Turnover Chart

Medical Marijuana Annual Data

Trend

Dec09

Dec10

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Inventory Turnover

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0.49

4.47

0.97

0.83

2.23

Medical Marijuana Semi-Annual Data
	Dec09	Dec10	Dec12	Dec13	Dec14	Dec15	Dec16	Dec17
Inventory Turnover	Get a 7-Day Free Trial			0.49	4.47	0.97	0.83	2.23

Medical Marijuana Inventory Turnover Calculation

Medical Marijuana's Inventory Turnover for the fiscal year that ended in Dec. 2017 is calculated as

	Inventory Turnover (A: Dec. 2017 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2017 )	/ (	(Total Inventories (A: Dec. 2016 )	+	Total Inventories (A: Dec. 2017 ))	/	count )
=	8.114	/ (	(3.411	+	3.856)	/	2 )
=	8.114	/	3.6335
=	2.23

Medical Marijuana's Inventory Turnover for the quarter that ended in Dec. 2017 is calculated as

	Inventory Turnover (Q: Dec. 2017 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2017 )	/ (	(Total Inventories (Q: Dec. 2016 )	+	Total Inventories (Q: Dec. 2017 ))	/	count )
=	8.114	/ (	(3.411	+	3.856)	/	2 )
=	8.114	/	3.6335
=	2.23

Medical Marijuana (OTCPK:MJNA) 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.

Medical Marijuana's Days Inventory for the six months ended in Dec. 2017 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2017 )	/	Cost of Goods Sold (Q: Dec. 2017 )	*	Days in Period
	=	3.6335	/	8.114	*	365 / 2
	=	81.72

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.

Medical Marijuana's Inventory to Revenue for the quarter that ended in Dec. 2017 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2017 )	/	Revenue (Q: Dec. 2017 )
	=	3.6335	/	26.523
	=	0.14

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.

Medical Marijuana Inventory Turnover Related Terms

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Medical Marijuana (Medical Marijuana) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Medical Marijuana Inc (OTCPK:MJNA) » Definitions » Inventory Turnover

Traded in Other Exchanges

N/A

Address

2384 La Mirada Drive, Vista, CA, USA, 92081

Website

https://www.medicalmarijuanainc.com

Medical Marijuana Inc is engaged in the development, sale, and distribution of hemp oil that contains naturally occurring cannabinoids, including cannabidiol and other products containing CBD-rich hemp oil. The company's products are used by pharmaceutical, nutraceutical, and cosmeceutical industries. Some of its products are CBD Capsules, CBD Tinctures, Vaporizers, and Hemp foods among others.