ARTHQ (Arch Therapeutics) Inventory Turnover: 0.02 (As of Jun. 2024)

What is Arch Therapeutics Inventory Turnover?

Arch Therapeutics ARTHQ -99.00% 12 Inventory Turnover is 0.02 as of Jun. 2024. GuruFocus rates ARTHQ 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. Arch Therapeutics's Cost of Goods Sold for the three months ended in Jun. 2024 was $0.02 Mil. Arch Therapeutics's Average Total Inventories for the quarter that ended in Jun. 2024 was $1.33 Mil. Arch Therapeutics's Inventory Turnover for the quarter that ended in Jun. 2024 was 0.02.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Arch Therapeutics's Days Inventory for the three months ended in Jun. 2024 was 5,757.44.

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. Arch Therapeutics's Inventory-to-Revenue for the quarter that ended in Jun. 2024 was 42.74.

Arch Therapeutics (OTCPK:ARTHQ) 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.

Arch Therapeutics's Days Inventory for the three months ended in Jun. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2024 )	/	Cost of Goods Sold (Q: Jun. 2024 )	*	Days in Period
	=	1.325	/	0.021	*	365 / 4
	=	5,757.44

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.

Arch Therapeutics's Inventory to Revenue for the quarter that ended in Jun. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2024 )	/	Revenue (Q: Jun. 2024 )
	=	1.325	/	0.031
	=	42.74

* 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.

Arch Therapeutics Inventory Turnover Related Terms

Arch Therapeutics Inventory Turnover Historical Data

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The historical data trend for Arch Therapeutics's Inventory Turnover can be seen below:

Arch Therapeutics Inventory Turnover Chart

Arch Therapeutics Annual Data

Trend

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Sep23

Inventory Turnover

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0.00

0.03

0.04

0.06

Arch Therapeutics Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
Inventory Turnover	Get a 7-Day Free Trial															0.01	0.02	0.02	0.02	0.02

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Arch Therapeutics Inventory Turnover Calculation

Arch Therapeutics's Inventory Turnover for the fiscal year that ended in Sep. 2023 is calculated as

	Inventory Turnover (A: Sep. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Sep. 2023 )	/ (	(Total Inventories (A: Sep. 2022 )	+	Total Inventories (A: Sep. 2023 ))	/	count )
=	0.078	/ (	(1.415	+	1.365)	/	2 )
=	0.078	/	1.39
=	0.06

Arch Therapeutics's Inventory Turnover for the quarter that ended in Jun. 2024 is calculated as

	Inventory Turnover (Q: Jun. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jun. 2024 )	/ (	(Total Inventories (Q: Mar. 2024 )	+	Total Inventories (Q: Jun. 2024 ))	/	count )
=	0.021	/ (	(1.33	+	1.32)	/	2 )
=	0.021	/	1.325
=	0.02

Frequently Asked Questions Learn more about Inventory Turnover →

What does a Inventory Turnover of 0.02 mean?

Arch Therapeutics (ARTHQ) has a Inventory Turnover of 0.02 as of Jun. 2024. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Arch Therapeutics and its competitors.

Is Arch Therapeutics' Inventory Turnover too high?

Arch Therapeutics' current Inventory Turnover is 0.02. Overall, Arch Therapeutics has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.

How does Arch Therapeutics' Inventory Turnover compare to GRTSQ and MTEM?

Arch Therapeutics' Inventory Turnover of 0.02 can be compared against companies in the Biotechnology 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 Biotechnology company?

A good Inventory Turnover depends on the Biotechnology 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 Arch Therapeutics and its competitors. Arch Therapeutics's current Inventory Turnover is 0.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Arch Therapeutics stock overvalued right now?

Arch Therapeutics (ARTHQ) has a current Inventory Turnover of 0.02. The current Inventory Turnover is 0.02. Arch Therapeutics' 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 Arch Therapeutics (ARTHQ), the current Inventory Turnover is 0.02 as of Jun. 2024. 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.

Arch Therapeutics Business Description

Industry Healthcare Biotechnology

Comparable Companies GRTSQ MTEM PXMD BTAX NBIO VRTX ASX:CSL REGN XKRX:207940 ALNY XBRU:ARGX XBRU:UCB ONC XKRX:068270 BNTX SMMT RPRX OCSE:GMAB XKRX:196170 INCY

Address 235 Walnut Street, Suite 6, Framingham, MA, USA, 01702

Website https://www.archtherapeutics.com

Arch Therapeutics Inc is a development-stage biotechnology company. It focuses on developing products that manage surgery and interventional care faster and safer by using a novel approach to stop bleeding, control leaking, and provide other advantages during surgery and trauma care. The company's primary product candidate, collectively known as the AC5 Devices (AC5), is designed to achieve hemostasis in surgical procedures. The company operates its business operations in the United States.

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