Sigma Lithium (TSXV:SGML) Inventory Turnover : 2.05 (As of Sep. 2023)

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What is Sigma Lithium 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. Sigma Lithium's Cost of Goods Sold for the three months ended in Sep. 2023 was C$47.1 Mil. Sigma Lithium's Average Total Inventories for the quarter that ended in Sep. 2023 was C$23.0 Mil. Sigma Lithium's Inventory Turnover for the quarter that ended in Sep. 2023 was 2.05.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Sigma Lithium's Days Inventory for the three months ended in Sep. 2023 was 44.47.

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. Sigma Lithium's Inventory-to-Revenue for the quarter that ended in Sep. 2023 was 0.18.

Sigma Lithium Inventory Turnover Historical Data

The historical data trend for Sigma Lithium'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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Sigma Lithium Inventory Turnover Chart

Sigma Lithium Annual Data

Trend

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Inventory Turnover

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Sigma Lithium Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Inventory Turnover	Get a 7-Day Free Trial															-	-	0.05	-	2.05

Sigma Lithium Inventory Turnover Calculation

Sigma Lithium's Inventory Turnover for the fiscal year that ended in Dec. 2022 is calculated as

	Inventory Turnover (A: Dec. 2022 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2022 )	/ (	(Total Inventories (A: Dec. 2021 )	+	Total Inventories (A: Dec. 2022 ))	/	count )
=	0.102	/ (	(0	+	0)	/	1 )
=	0.102	/	0
=	N/A

Sigma Lithium'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: Jun. 2023 )	+	Total Inventories (Q: Sep. 2023 ))	/	count )
=	47.096	/ (	(24.107	+	21.797)	/	2 )
=	47.096	/	22.952
=	2.05

Sigma Lithium (TSXV:SGML) 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.

Sigma Lithium's Days Inventory for the three 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
	=	22.952	/	47.096	*	365 / 4
	=	44.47

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.

Sigma Lithium'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 )
	=	22.952	/	129.925
	=	0.18

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.

Sigma Lithium Inventory Turnover Related Terms

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Sigma Lithium (TSXV:SGML) Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Sigma Lithium Corp (TSXV:SGML) » Definitions » Inventory Turnover

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SGML:USA S2GM34:Brazil

Address

Avenida Nove de Julho 4939, 9th Floor, Torre Europa, Itaim, Sao Paulo, SP, BRA, 01407-200

Website

https://www.sigmalithiumresources.com

Sigma Lithium Corp is dedicated to powering the next generation of electric vehicle batteries with environmentally sustainable and high-purity lithium. The company is in construction at its wholly owned Grota do Cirilo Project in Brazil, one of the largest and highest-grade hard rock lithium spodumene deposits in the Americas. It is committed to strong ESG practices and is aiming to be net zero emissions by 2024. Its green-friendly processing plant will use 100% renewable energy, 100% recycled water and 100% dry-stack tailings.