CBDHF (HempFusion Wellness) Inventory Turnover: 0.35 (As of Jun. 2021)

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What is HempFusion Wellness Inventory Turnover?

HempFusion Wellness CBDHF -90.00% Inventory Turnover is 0.35 as of Jun. 2021.

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. HempFusion Wellness's Cost of Goods Sold for the three months ended in Jun. 2021 was $1.00 Mil. HempFusion Wellness's Average Total Inventories for the quarter that ended in Jun. 2021 was $2.88 Mil. HempFusion Wellness's Inventory Turnover for the quarter that ended in Jun. 2021 was 0.35.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. HempFusion Wellness's Days Inventory for the three months ended in Jun. 2021 was 262.72.

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. HempFusion Wellness's Inventory-to-Revenue for the quarter that ended in Jun. 2021 was 2.34.

HempFusion Wellness  (OTCPK:CBDHF) 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.

HempFusion Wellness's Days Inventory for the three months ended in Jun. 2021 is calculated as:

Days Inventory =Average Total Inventories (Q: Jun. 2021 )/Cost of Goods Sold (Q: Jun. 2021 )*Days in Period
=2.882/1.001*365 / 4
=262.72

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.

HempFusion Wellness's Inventory to Revenue for the quarter that ended in Jun. 2021 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Jun. 2021 ) / Revenue (Q: Jun. 2021 )
=2.882 / 1.233
=2.34

* 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.

HempFusion Wellness Inventory Turnover Related Terms

HempFusion Wellness Inventory Turnover Historical Data

* Premium members only.

The historical data trend for HempFusion Wellness'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.

HempFusion Wellness Inventory Turnover Chart

HempFusion Wellness Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20
Inventory Turnover
0.32 1.95 1.39 1.88 1.57

HempFusion Wellness Quarterly Data
Dec16 Dec17 Dec18 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Inventory Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 0.00 0.33 0.34 0.26 0.35

HempFusion Wellness Inventory Turnover Calculation

HempFusion Wellness's Inventory Turnover for the fiscal year that ended in Dec. 2020 is calculated as

Inventory Turnover (A: Dec. 2020 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2020 ) / ((Total Inventories (A: Dec. 2019 ) + Total Inventories (A: Dec. 2020 )) / count )
=3.424 / ((1.772 + 2.577) / 2 )
=3.424 / 2.1745
=1.57

HempFusion Wellness's Inventory Turnover for the quarter that ended in Jun. 2021 is calculated as

Inventory Turnover (Q: Jun. 2021 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Jun. 2021 ) / ((Total Inventories (Q: Mar. 2021 ) + Total Inventories (Q: Jun. 2021 )) / count )
=1.001 / ((2.932 + 2.832) / 2 )
=1.001 / 2.882
=0.35

* 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.

Frequently Asked Questions Learn more about Inventory Turnover →
What does a Inventory Turnover of 0.35 mean?
HempFusion Wellness (CBDHF) has a Inventory Turnover of 0.35 as of Jun. 2021. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on HempFusion Wellness and its competitors.
Is HempFusion Wellness' Inventory Turnover too high?
HempFusion Wellness' current Inventory Turnover is 0.35.
How does HempFusion Wellness' Inventory Turnover compare to ZTS and CTLT?
HempFusion Wellness' Inventory Turnover of 0.35 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 HempFusion Wellness and its competitors. HempFusion Wellness's current Inventory Turnover is 0.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HempFusion Wellness stock overvalued right now?
HempFusion Wellness (CBDHF) has a current Inventory Turnover of 0.35. The current Inventory Turnover is 0.35. 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 HempFusion Wellness (CBDHF), the current Inventory Turnover is 0.35 as of Jun. 2021. 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.

HempFusion Wellness Business Description

Address 1550 Larimer Street, Suite 224, Denver, CO, USA, 80202
HempFusion Wellness Inc is a health and wellness supplement company. The company manufactures, markets, and sells Hemp-based CBD and probiotic products.