ERII (Energy Recovery) Inventory Turnover: 0.25 (As of Mar. 2026)

What is Energy Recovery Inventory Turnover?

Energy Recovery ERII +0.34% 71 Inventory Turnover is 0.25 as of Mar. 2026. GuruFocus rates ERII with a GF Score™ of 71/100 and a GF Value™ of $14.78 (Significantly Undervalued). The stock has 5 warning signs investors should review.

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. Energy Recovery's Cost of Goods Sold for the three months ended in Mar. 2026 was $7.0 Mil. Energy Recovery's Average Total Inventories for the quarter that ended in Mar. 2026 was $27.6 Mil. Energy Recovery's Inventory Turnover for the quarter that ended in Mar. 2026 was 0.25.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Energy Recovery's Days Inventory for the three months ended in Mar. 2026 was 359.23.

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. Energy Recovery's Inventory-to-Revenue for the quarter that ended in Mar. 2026 was 2.84.

Energy Recovery (NAS:ERII) 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.

Energy Recovery's Days Inventory for the three months ended in Mar. 2026 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2026 )	/	Cost of Goods Sold (Q: Mar. 2026 )	*	Days in Period
	=	27.573	/	7.004	*	365 / 4
	=	359.23

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.

Energy Recovery's Inventory to Revenue for the quarter that ended in Mar. 2026 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2026 )	/	Revenue (Q: Mar. 2026 )
	=	27.573	/	9.706
	=	2.84

* 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.

Energy Recovery Inventory Turnover Related Terms

Energy Recovery Inventory Turnover Historical Data

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The historical data trend for Energy Recovery's Inventory Turnover can be seen below:

Energy Recovery Inventory Turnover Chart

Energy Recovery Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

Inventory Turnover

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2.03

1.57

1.51

1.88

1.91

Energy Recovery Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
Inventory Turnover	Get a 7-Day Free Trial															0.13	0.31	0.35	0.76	0.25

71GF Score

Energy Recovery Inc ERII

Inventory Turnover is just one metric. See GF Score™, valuation, warning signs, and more.

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Energy Recovery Inventory Turnover Calculation

Energy Recovery's Inventory Turnover for the fiscal year that ended in Dec. 2025 is calculated as

	Inventory Turnover (A: Dec. 2025 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2025 )	/ (	(Total Inventories (A: Dec. 2024 )	+	Total Inventories (A: Dec. 2025 ))	/	count )
=	47.056	/ (	(24.906	+	24.26)	/	2 )
=	47.056	/	24.583
=	1.91

Energy Recovery's Inventory Turnover for the quarter that ended in Mar. 2026 is calculated as

	Inventory Turnover (Q: Mar. 2026 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2026 )	/ (	(Total Inventories (Q: Dec. 2025 )	+	Total Inventories (Q: Mar. 2026 ))	/	count )
=	7.004	/ (	(24.26	+	30.886)	/	2 )
=	7.004	/	27.573
=	0.25

Frequently Asked Questions Learn more about Inventory Turnover →

What does a Inventory Turnover of 0.25 mean?

Energy Recovery (ERII) has a Inventory Turnover of 0.25 as of Mar. 2026. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Energy Recovery and its competitors.

Is Energy Recovery's Inventory Turnover too high?

Energy Recovery's current Inventory Turnover is 0.25. Overall, Energy Recovery has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.

How does Energy Recovery's Inventory Turnover compare to ARQ and FTEK?

Energy Recovery's Inventory Turnover of 0.25 can be compared against companies in the Industrial Products 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 an Industrial Products company?

A good Inventory Turnover depends on the Industrial Products 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 Energy Recovery and its competitors. Energy Recovery's current Inventory Turnover is 0.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Energy Recovery stock overvalued right now?

Based on GuruFocus' analysis, Energy Recovery (ERII) is currently considered Significantly Undervalued. The stock's GF Value™ is $14.78, compared to a current price of $8.79 — trading 40.5% below its estimated fair value. The current Inventory Turnover is 0.25. Energy Recovery's overall GF Score™ is 71/100 with 5 warning signs to review. 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 Energy Recovery (ERII), the current Inventory Turnover is 0.25 as of Mar. 2026. 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.

Is Energy Recovery (ERII) Overvalued in 2026?

Based on GuruFocus' analysis, Energy Recovery stock appears to be undervalued. The current stock price of $8.79 is trading 40.5% below its estimated GF Value™ of $14.78. GuruFocus considers Energy Recovery to be Significantly Undervalued.

Key valuation signals for ERII:

Inventory Turnover: 0.25
GF Value™: $14.78 vs. price of $8.79 (40.5% below fair value)
GF Score™: 71/100 with 5 warning signs

No single metric tells the full story. See the ERII stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Energy Recovery Business Description

Industry Industrials Industrial Products

Comparable Companies ARQ FTEK BCHT SCWO CLIR TOMZ RAIN BNET LIQT CLWT VLTO SZSE:300390 ZWS TSE:6370 TSE:6368 OSTO:MTRS SHSE:600388 CECO HKSE:00586 TPE:6944

Other Exchanges 5E2:Germany

Address 1717 Doolittle Drive, San Leandro, CA, USA, 94577

Website https://www.energyrecovery.com

Energy Recovery Inc designs and manufactures energy-saving technologies. The firm uses its proprietary pressure exchanger technology to help customers in multiple industries improve their operations and lower their emissions. Using its proprietary technology, it offers energy recovery devices, including pressure exchangers, pumps, and turbochargers, mainly used for seawater desalination and wastewater treatment. Additionally, the company is involved in the development of emerging technologies, such as the PX G1300 used in industrial and commercial refrigeration applications. The firm's reportable operating segments are: Water, which generates maximum revenue, and Emerging Technologies. Geographically, it generates maximum revenue from the Middle East, and the rest from other markets.

71GF Score

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$8.79

Price

$14.78

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