Nova Cannabis (FRA:2LK) Inventory Turnover : 2.91 (As of Mar. 2024)

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What is Nova Cannabis 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. Nova Cannabis's Cost of Goods Sold for the three months ended in Mar. 2024 was €32.9 Mil. Nova Cannabis's Average Total Inventories for the quarter that ended in Mar. 2024 was €11.3 Mil. Nova Cannabis's Inventory Turnover for the quarter that ended in Mar. 2024 was 2.91.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Nova Cannabis's Days Inventory for the three months ended in Mar. 2024 was 31.36.

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. Nova Cannabis's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.26.

Nova Cannabis Inventory Turnover Historical Data

The historical data trend for Nova Cannabis'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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Nova Cannabis Inventory Turnover Chart

Nova Cannabis Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

5.69

23.28

19.71

17.94

14.00

Nova Cannabis Quarterly Data
	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial												3.83	3.87	3.88	3.39	2.91

Nova Cannabis Inventory Turnover Calculation

Nova Cannabis's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	135.156	/ (	(8.108	+	11.202)	/	2 )
=	135.156	/	9.655
=	14.00

Nova Cannabis's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	32.946	/ (	(11.202	+	11.441)	/	2 )
=	32.946	/	11.3215
=	2.91

Nova Cannabis (FRA:2LK) 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.

Nova Cannabis's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	11.3215	/	32.946	*	365 / 4
	=	31.36

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.

Nova Cannabis's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	11.3215	/	43.673
	=	0.26

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.

Nova Cannabis Inventory Turnover Related Terms

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Nova Cannabis (FRA:2LK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Nova Cannabis Inc (FRA:2LK) » Definitions » Inventory Turnover

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NVACF:USA NOVC:Canada

Address

101, 17220 Stony Plain Road NW, Edmonton, AB, CAN, T5S 1K6

Website

https://www.novacannabisstore.com

Nova Cannabis Inc is engaged in the operation of retail cannabis stores in Canada. It operates approximately 88 retail cannabis stores in Alberta, 16 in Ontario, and one in Saskatchewan. Some of its brands are Value Buds and Sweet Tree Cannabis Co. The company's products include Dried flowers, Pre-rolls, Candy and Cartridges, among others.

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