Preferred Commerce (Preferred Commerce) Inventory Turnover : 0.23 (As of Nov. 2015)

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What is Preferred Commerce 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. Preferred Commerce's Cost of Goods Sold for the six months ended in Nov. 2015 was $0.08 Mil. Preferred Commerce's Average Total Inventories for the quarter that ended in Nov. 2015 was $0.37 Mil. Preferred Commerce's Inventory Turnover for the quarter that ended in Nov. 2015 was 0.23.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Preferred Commerce's Days Inventory for the six months ended in Nov. 2015 was 807.13.

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. Preferred Commerce's Inventory-to-Revenue for the quarter that ended in Nov. 2015 was 1.50.

Preferred Commerce Inventory Turnover Historical Data

The historical data trend for Preferred Commerce'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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Preferred Commerce Inventory Turnover Chart

Preferred Commerce Annual Data

Trend

Nov07

Nov08

Nov09

Nov10

Nov14

Nov15

Inventory Turnover

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0.10

0.23

Preferred Commerce Semi-Annual Data
	Nov07	Nov08	Nov09	Nov10	Nov14	Nov15
Inventory Turnover	Get a 7-Day Free Trial			-	-	-	0.10	0.23

Preferred Commerce Inventory Turnover Calculation

Preferred Commerce's Inventory Turnover for the fiscal year that ended in Nov. 2015 is calculated as

	Inventory Turnover (A: Nov. 2015 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Nov. 2015 )	/ (	(Total Inventories (A: Nov. 2014 )	+	Total Inventories (A: Nov. 2015 ))	/	count )
=	0.084	/ (	(0.352	+	0.391)	/	2 )
=	0.084	/	0.3715
=	0.23

Preferred Commerce's Inventory Turnover for the quarter that ended in Nov. 2015 is calculated as

	Inventory Turnover (Q: Nov. 2015 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Nov. 2015 )	/ (	(Total Inventories (Q: Nov. 2014 )	+	Total Inventories (Q: Nov. 2015 ))	/	count )
=	0.084	/ (	(0.352	+	0.391)	/	2 )
=	0.084	/	0.3715
=	0.23

Preferred Commerce (OTCPK:CELV) 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.

Preferred Commerce's Days Inventory for the six months ended in Nov. 2015 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Nov. 2015 )	/	Cost of Goods Sold (Q: Nov. 2015 )	*	Days in Period
	=	0.3715	/	0.084	*	365 / 2
	=	807.13

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.

Preferred Commerce's Inventory to Revenue for the quarter that ended in Nov. 2015 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Nov. 2015 )	/	Revenue (Q: Nov. 2015 )
	=	0.3715	/	0.247
	=	1.50

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.

Preferred Commerce Inventory Turnover Related Terms

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Preferred Commerce (Preferred Commerce) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Preferred Commerce Inc (OTCPK:CELV) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

3260 Fairline Farms Road, Unit No. 1, Wellington, FL, USA, 33414

Website

http://www.preferredcommerce.com

Preferred Commerce Inc is focused on health and wellness products with main product being Thriv5. Thriv5 products contain Superoxide Dismutase (SOD) combined with antioxidants, soluble corn fiber and other ingredients that help the human body regenerate healthy cells and strengthen the immune system. The company is promoting the product through retail stores, online sales, and social media.