Vital Farms (FRA:5KH) Inventory Turnover : 2.90 (As of Jun. 2024)

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What is Vital Farms 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. Vital Farms's Cost of Goods Sold for the three months ended in Jun. 2024 was €83.3 Mil. Vital Farms's Average Total Inventories for the quarter that ended in Jun. 2024 was €28.8 Mil. Vital Farms's Inventory Turnover for the quarter that ended in Jun. 2024 was 2.90.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Vital Farms's Days Inventory for the three months ended in Jun. 2024 was 31.51.

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. Vital Farms's Inventory-to-Revenue for the quarter that ended in Jun. 2024 was 0.21.

Vital Farms Inventory Turnover Historical Data

The historical data trend for Vital Farms'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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Vital Farms Inventory Turnover Chart

Vital Farms Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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11.70

10.32

15.53

13.61

10.23

Vital Farms Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
Inventory Turnover	Get a 7-Day Free Trial															1.80	1.85	2.52	2.80	2.90

Vital Farms Inventory Turnover Calculation

Vital Farms'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 )
=	283.84	/ (	(25.345	+	30.165)	/	2 )
=	283.84	/	27.755
=	10.23

Vital Farms's Inventory Turnover for the quarter that ended in Jun. 2024 is calculated as

	Inventory Turnover (Q: Jun. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jun. 2024 )	/ (	(Total Inventories (Q: Mar. 2024 )	+	Total Inventories (Q: Jun. 2024 ))	/	count )
=	83.34	/ (	(28.348	+	29.215)	/	2 )
=	83.34	/	28.7815
=	2.90

Vital Farms (FRA:5KH) 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.

Vital Farms's Days Inventory for the three months ended in Jun. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2024 )	/	Cost of Goods Sold (Q: Jun. 2024 )	*	Days in Period
	=	28.7815	/	83.34	*	365 / 4
	=	31.51

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.

Vital Farms's Inventory to Revenue for the quarter that ended in Jun. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2024 )	/	Revenue (Q: Jun. 2024 )
	=	28.7815	/	136.923
	=	0.21

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.

Vital Farms Inventory Turnover Related Terms

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Vital Farms Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Vital Farms Inc (FRA:5KH) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

VITL:USA 5KH:Germany

Address

3601 South Congress Avenue, Suite C100, Austin, TX, USA, 78704

Website

https://www.vitalfarms.com

Vital Farms Inc is an ethical food company. The company retails pasture-raised eggs and butter. Its products include Pasture-Raised Eggs and Pasture-Raised Butter & Ghee. The company's purpose is rooted in a commitment to Conscious Capitalism, which prioritizes the long-term benefits of each of its stakeholders (farmers and suppliers, customers and consumers, communities and the environment, employees, and stockholders).

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