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Coffee (Coffee) Inventory Turnover : 6.88 (As of Dec. 2018)


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What is Coffee 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. Coffee's Cost of Goods Sold for the three months ended in Dec. 2018 was $1.88 Mil. Coffee's Average Total Inventories for the quarter that ended in Dec. 2018 was $0.27 Mil. Coffee's Inventory Turnover for the quarter that ended in Dec. 2018 was 6.88.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Coffee's Days Inventory for the three months ended in Dec. 2018 was 13.25.

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. Coffee's Inventory-to-Revenue for the quarter that ended in Dec. 2018 was 0.08.

Coffee Inventory Turnover Historical Data

The historical data trend for Coffee'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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Coffee Inventory Turnover Chart

Coffee Annual Data
Trend Jul14 Jul15 Jul16 Aug17 Dec18
Inventory Turnover
- - - 77.30 30.95

Coffee Quarterly Data
Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Nov16 Feb17 May17 Aug17 Nov17 Mar18 Jun18 Sep18 Dec18
Inventory Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.08 10.02 13.84 13.41 6.88

Coffee Inventory Turnover Calculation

Coffee's Inventory Turnover for the fiscal year that ended in Dec. 2018 is calculated as

Inventory Turnover (A: Dec. 2018 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2018 ) / ((Total Inventories (A: Aug. 2017 ) + Total Inventories (A: Dec. 2018 )) / count )
=6.794 / ((0.047 + 0.392) / 2 )
=6.794 / 0.2195
=30.95

Coffee's Inventory Turnover for the quarter that ended in Dec. 2018 is calculated as

Inventory Turnover (Q: Dec. 2018 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Dec. 2018 ) / ((Total Inventories (Q: Sep. 2018 ) + Total Inventories (Q: Dec. 2018 )) / count )
=1.883 / ((0.155 + 0.392) / 2 )
=1.883 / 0.2735
=6.88

* 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.

Coffee  (OTCPK:COFE) 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.

Coffee's Days Inventory for the three months ended in Dec. 2018 is calculated as:

Days Inventory =Average Total Inventories (Q: Dec. 2018 )/Cost of Goods Sold (Q: Dec. 2018 )*Days in Period
=0.2735/1.883*365 / 4
=13.25

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.

Coffee's Inventory to Revenue for the quarter that ended in Dec. 2018 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Dec. 2018 ) / Revenue (Q: Dec. 2018 )
=0.2735 / 3.596
=0.08

* 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.

Coffee Inventory Turnover Related Terms

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Coffee (Coffee) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Coffee Inc (OTCPK:COFE) » Definitions » Inventory Turnover
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Traded in Other Exchanges
N/A
Address
1901 North Roselle Road, Suite 800, PMB No.8080, Schaumburg, IL, USA, 60195
Website
https://www.coffeeincorporated.com
Coffee Inc is a company engaged in the acquisition and management of standout specialty coffee brands and investment in the downstream global coffee sector. The Company generates revenue through sales at company-operated stores in the UK and the US where the company sold its proprietary coffee and related products, and complementary food and snacks.