Veritas Farms (Veritas Farms) Inventory Turnover : 0.09 (As of Sep. 2023)

View and export this data going back to 2016. Start your Free Trial

What is Veritas Farms 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. Veritas Farms's Cost of Goods Sold for the three months ended in Sep. 2023 was $0.18 Mil. Veritas Farms's Average Total Inventories for the quarter that ended in Sep. 2023 was $1.99 Mil. Veritas Farms's Inventory Turnover for the quarter that ended in Sep. 2023 was 0.09.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Veritas Farms's Days Inventory for the three months ended in Sep. 2023 was 990.79.

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. Veritas Farms's Inventory-to-Revenue for the quarter that ended in Sep. 2023 was 8.42.

Veritas Farms Inventory Turnover Historical Data

The historical data trend for Veritas Farms'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.

* Premium members only.

Veritas Farms Inventory Turnover Chart

Veritas Farms Annual Data

Trend

Jan16

Jan17

Dec18

Dec19

Dec20

Dec21

Dec22

Inventory Turnover

Get a 7-Day Free Trial

0.48

0.84

0.52

0.90

Veritas Farms 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															0.10	0.50	0.07	0.29	0.09

Veritas Farms Inventory Turnover Calculation

Veritas Farms'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 )
=	2.446	/ (	(3.212	+	2.243)	/	2 )
=	2.446	/	2.7275
=	0.90

Veritas Farms'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 )
=	0.183	/ (	(1.683	+	2.291)	/	2 )
=	0.183	/	1.987
=	0.09

Veritas Farms (OTCPK:VFRM) 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.

Veritas Farms'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
	=	1.987	/	0.183	*	365 / 4
	=	990.79

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.

Veritas Farms'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 )
	=	1.987	/	0.236
	=	8.42

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.

Veritas Farms Inventory Turnover Related Terms

Thank you for viewing the detailed overview of Veritas Farms's Inventory Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.

Veritas Farms (Veritas Farms) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Veritas Farms Inc (OTCPK:VFRM) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

401 E. Las Olas Boulevard, Suite 1400, Fort Lauderdale, FL, USA, 33001

Website

https://www.theveritasfarms.com

Veritas Farms Inc is engaged in producing natural rich-hemp products, using strict natural protocols and materials yielding broad spectrum phytocannabinoid rich hemp oils, distillates and isolates. Its products include Full Spectrum CBD Tincture, Full Spectrum CBD Salve, Full Spectrum CBD Capsules, Full Spectrum CBD Lotion and Others.