Sorrento Therapeutics (LTS:0L85) Inventory Turnover: 0.81 (As of Jun. 2023)

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LTS:0L85 Sorrento Therapeutics Inc LTS:0L85
12 GF Score
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What is Sorrento Therapeutics Inventory Turnover?

Sorrento Therapeutics LTS:0L85 12 Inventory Turnover is 0.81 as of Jun. 2023. GuruFocus rates LTS:0L85 with a GF Score™ of 12/100.

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. Sorrento Therapeutics's Cost of Goods Sold for the three months ended in Jun. 2023 was $8.45 Mil. Sorrento Therapeutics's Average Total Inventories for the quarter that ended in Jun. 2023 was $10.48 Mil. Sorrento Therapeutics's Inventory Turnover for the quarter that ended in Jun. 2023 was 0.81.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Sorrento Therapeutics's Days Inventory for the three months ended in Jun. 2023 was 113.13.

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. Sorrento Therapeutics's Inventory-to-Revenue for the quarter that ended in Jun. 2023 was 0.70.

Sorrento Therapeutics  (LTS:0L85) 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.

Sorrento Therapeutics's Days Inventory for the three months ended in Jun. 2023 is calculated as:

Days Inventory =Average Total Inventories (Q: Jun. 2023 )/Cost of Goods Sold (Q: Jun. 2023 )*Days in Period
=10.4795/8.453*365 / 4
=113.13

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.

Sorrento Therapeutics's Inventory to Revenue for the quarter that ended in Jun. 2023 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Jun. 2023 ) / Revenue (Q: Jun. 2023 )
=10.4795 / 15.025
=0.70

* 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.

Sorrento Therapeutics Inventory Turnover Related Terms

Sorrento Therapeutics Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Sorrento Therapeutics'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.

Sorrento Therapeutics Inventory Turnover Chart

Sorrento Therapeutics Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.44 3.91 3.83 2.62 3.70

Sorrento Therapeutics Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
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 Premium Member Only Premium Member Only Premium Member Only 0.33 0.43 0.98 0.49 0.81
LTS:0L85
12GF Score
Sorrento Therapeutics Inc LTS:0L85
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Sorrento Therapeutics Inventory Turnover Calculation

Sorrento Therapeutics's Inventory Turnover for the fiscal year that ended in Dec. 2022 is calculated as

Inventory Turnover (A: Dec. 2022 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2022 ) / ((Total Inventories (A: Dec. 2021 ) + Total Inventories (A: Dec. 2022 )) / count )
=33.452 / ((8.106 + 9.976) / 2 )
=33.452 / 9.041
=3.70

Sorrento Therapeutics's Inventory Turnover for the quarter that ended in Jun. 2023 is calculated as

Inventory Turnover (Q: Jun. 2023 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Jun. 2023 ) / ((Total Inventories (Q: Mar. 2023 ) + Total Inventories (Q: Jun. 2023 )) / count )
=8.453 / ((11.308 + 9.651) / 2 )
=8.453 / 10.4795
=0.81

* 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.

Frequently Asked Questions Learn more about Inventory Turnover →
What does a Inventory Turnover of 0.81 mean?
Sorrento Therapeutics (LTS:0L85) has a Inventory Turnover of 0.81 as of Jun. 2023. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Sorrento Therapeutics and its competitors.
Is Sorrento Therapeutics' Inventory Turnover too high?
Sorrento Therapeutics' current Inventory Turnover is 0.81. Overall, Sorrento Therapeutics has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Sorrento Therapeutics' Inventory Turnover compare to IMUX and OCUP?
Sorrento Therapeutics' Inventory Turnover of 0.81 can be compared against companies in the Biotechnology 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 a Biotechnology company?
A good Inventory Turnover depends on the Biotechnology 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 Sorrento Therapeutics and its competitors. Sorrento Therapeutics's current Inventory Turnover is 0.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sorrento Therapeutics stock overvalued right now?
Sorrento Therapeutics (LTS:0L85) has a current Inventory Turnover of 0.81. The current Inventory Turnover is 0.81. Sorrento Therapeutics' overall GF Score™ is 12/100. 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 Sorrento Therapeutics (LTS:0L85), the current Inventory Turnover is 0.81 as of Jun. 2023. 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.

Sorrento Therapeutics Business Description

Address 4955 Directors Place, San Diego, CA, USA, 92121
Sorrento Therapeutics Inc is a clinical and commercial-stage biopharmaceutical company developing a portfolio of next-generation treatments for three major therapeutic areas: cancer, infectious disease, and pain. Its multimodal, multipronged approach to fighting cancer is made possible by its extensive immuno-oncology platforms, including key assets such as fully human antibodies (G-MAB library), immuno-cellular therapies (DAR-T), antibody-drug conjugates (ADCs), and oncolytic virus (Seprehvec). Sorrento is also developing potential antiviral therapies and vaccines against coronaviruses, including COVI-AMG, COVIDROPS, COVISHIELD, FUJOVEE (Abivertinib), and OQORY (Covi-MSC), and diagnostic test solutions, including COVITRACK and COVIMARK.
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