Firma Holdings (Firma Holdings) Inventory Turnover : 1.16 (As of Jun. 2015)

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What is Firma Holdings 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. Firma Holdings's Cost of Goods Sold for the three months ended in Jun. 2015 was $0.32 Mil. Firma Holdings's Average Total Inventories for the quarter that ended in Jun. 2015 was $0.28 Mil. Firma Holdings's Inventory Turnover for the quarter that ended in Jun. 2015 was 1.16.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Firma Holdings's Days Inventory for the three months ended in Jun. 2015 was 78.85.

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. Firma Holdings's Inventory-to-Revenue for the quarter that ended in Jun. 2015 was 1.14.

Firma Holdings Inventory Turnover Historical Data

The historical data trend for Firma Holdings'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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Firma Holdings Inventory Turnover Chart

Firma Holdings Annual Data

Trend

Oct06

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Dec14

Inventory Turnover

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Firma Holdings Quarterly Data
	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15
Inventory Turnover	Get a 7-Day Free Trial															-	-	-	-	1.16

Firma Holdings Inventory Turnover Calculation

Firma Holdings's Inventory Turnover for the fiscal year that ended in Dec. 2014 is calculated as

	Inventory Turnover (A: Dec. 2014 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2014 )	/ (	(Total Inventories (A: Dec. 2013 )	+	Total Inventories (A: Dec. 2014 ))	/	count )
=	0	/ (	(0	+	0)	/	1 )
=	0	/	0
=	N/A

Firma Holdings's Inventory Turnover for the quarter that ended in Jun. 2015 is calculated as

	Inventory Turnover (Q: Jun. 2015 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jun. 2015 )	/ (	(Total Inventories (Q: Mar. 2015 )	+	Total Inventories (Q: Jun. 2015 ))	/	count )
=	0.32	/ (	(0.092	+	0.461)	/	2 )
=	0.32	/	0.2765
=	1.16

Firma Holdings (OTCPK:FRMA) 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.

Firma Holdings's Days Inventory for the three months ended in Jun. 2015 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2015 )	/	Cost of Goods Sold (Q: Jun. 2015 )	*	Days in Period
	=	0.2765	/	0.32	*	365 / 4
	=	78.85

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.

Firma Holdings's Inventory to Revenue for the quarter that ended in Jun. 2015 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2015 )	/	Revenue (Q: Jun. 2015 )
	=	0.2765	/	0.243
	=	1.14

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.

Firma Holdings Inventory Turnover Related Terms

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Firma Holdings (Firma Holdings) Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Firma Holdings Corp (OTCPK:FRMA) » Definitions » Inventory Turnover

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Traded in Other Exchanges

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Address

4915 Main Street, 2nd Floor, Suite 3, Downers Grove, IL, USA, 60515

Website

https://www.firmaholdingscorp.com

Firma Holdings Corp operates in the mining and consumer product sales business. In addition, it also sells personal protection equipment (commonly referred to as "PPE"), and household and consumer products with its existing joint venture partners as well as participates as a procurement agent for both commercial and government entities.