APPB (Applied Biosciences) Inventory Turnover: 0.50 (As of Dec. 2019)

What is Applied Biosciences Inventory Turnover?

Applied Biosciences APPB 12 Inventory Turnover is 0.50 as of Dec. 2019. GuruFocus rates APPB with a GF Score™ of 12/100.

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. Applied Biosciences's Cost of Goods Sold for the three months ended in Dec. 2019 was $0.05 Mil. Applied Biosciences's Average Total Inventories for the quarter that ended in Dec. 2019 was $0.10 Mil. Applied Biosciences's Inventory Turnover for the quarter that ended in Dec. 2019 was 0.50.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Applied Biosciences's Days Inventory for the three months ended in Dec. 2019 was 182.50.

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. Applied Biosciences's Inventory-to-Revenue for the quarter that ended in Dec. 2019 was 0.61.

Applied Biosciences (OTCPK:APPB) 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.

Applied Biosciences's Days Inventory for the three months ended in Dec. 2019 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2019 )	/	Cost of Goods Sold (Q: Dec. 2019 )	*	Days in Period
	=	0.104	/	0.052	*	365 / 4
	=	182.50

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.

Applied Biosciences's Inventory to Revenue for the quarter that ended in Dec. 2019 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2019 )	/	Revenue (Q: Dec. 2019 )
	=	0.104	/	0.17
	=	0.61

* 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.

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.

Applied Biosciences Inventory Turnover Related Terms

Applied Biosciences Inventory Turnover Historical Data

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The historical data trend for Applied Biosciences's Inventory Turnover can be seen below:

Applied Biosciences Inventory Turnover Chart

Applied Biosciences Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Inventory Turnover

0.00

0.30

6.00

Applied Biosciences Quarterly Data
	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19
Inventory Turnover	Get a 7-Day Free Trial															6.21	1.10	1.02	0.89	0.50

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Applied Biosciences Inventory Turnover Calculation

Applied Biosciences's Inventory Turnover for the fiscal year that ended in Mar. 2018 is calculated as

	Inventory Turnover (A: Mar. 2018 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2018 )	/ (	(Total Inventories (A: Mar. 2017 )	+	Total Inventories (A: Mar. 2018 ))	/	count )
=	0.156	/ (	(0.023	+	0.029)	/	2 )
=	0.156	/	0.026
=	6.00

Applied Biosciences's Inventory Turnover for the quarter that ended in Dec. 2019 is calculated as

	Inventory Turnover (Q: Dec. 2019 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2019 )	/ (	(Total Inventories (Q: Sep. 2019 )	+	Total Inventories (Q: Dec. 2019 ))	/	count )
=	0.052	/ (	(0.106	+	0.102)	/	2 )
=	0.052	/	0.104
=	0.50

Frequently Asked Questions Learn more about Inventory Turnover →

What does a Inventory Turnover of 0.50 mean?

Applied Biosciences (APPB) has a Inventory Turnover of 0.50 as of Dec. 2019. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Applied Biosciences and its competitors.

Is Applied Biosciences' Inventory Turnover too high?

Applied Biosciences' current Inventory Turnover is 0.50. Overall, Applied Biosciences has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.

How does Applied Biosciences' Inventory Turnover compare to CNABQ and OWCP?

Applied Biosciences' Inventory Turnover of 0.50 can be compared against companies in the Drug Manufacturers industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Inventory Turnover for a Drug Manufacturers company?

A good Inventory Turnover depends on the Drug Manufacturers industry context. However, Inventory Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Inventory Turnover mean?

A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Applied Biosciences and its competitors. Applied Biosciences's current Inventory Turnover is 0.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Applied Biosciences stock overvalued right now?

Applied Biosciences (APPB) has a current Inventory Turnover of 0.50. The current Inventory Turnover is 0.50. Applied Biosciences' overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Inventory Turnover calculated?

Inventory Turnover is calculated from a company's financial statements. For Applied Biosciences (APPB), the current Inventory Turnover is 0.50 as of Dec. 2019. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Applied Biosciences Business Description

Industry Healthcare Drug Manufacturers

Comparable Companies CNABQ OWCP CXUS CANB GSRX LITH GENH PCYN EVIO ACCA ZTS TSE:4502 XTER:MRK HKSE:03692 TSE:4523 SZSE:000661 TSE:4507 SZSE:000538 NSE:SUNPHARMA SZSE:300601

Address 112 North Curry Street, 18th Floor, Carson, NY, USA, 89703

Website https://www.appliedbiocorp.com

Applied Biosciences Corp is a vertically integrated company focused on the development and commercialization of novel, science-driven, synthetic cannabinoid therapeutics / biopharmaceuticals that target the endocannabinoid system to treat a wide-range of diseases across multiple therapeutic areas. The company also deliver high-quality consumer and OTC THC-free CBD products that promote overall health and wellbeing as well as state-of-the-art testing and analytics capabilities to its customers.

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