MENB (Mendocino Brewing Co) Inventory Turnover: 3.29 (As of Sep. 2016)


What is Mendocino Brewing Co Inventory Turnover?

Mendocino Brewing Co MENB Inventory Turnover is 3.29 as of Sep. 2016.

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. Mendocino Brewing Co's Cost of Goods Sold for the three months ended in Sep. 2016 was $4.64 Mil. Mendocino Brewing Co's Average Total Inventories for the quarter that ended in Sep. 2016 was $1.41 Mil. Mendocino Brewing Co's Inventory Turnover for the quarter that ended in Sep. 2016 was 3.29.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Mendocino Brewing Co's Days Inventory for the three months ended in Sep. 2016 was 27.71.

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. Mendocino Brewing Co's Inventory-to-Revenue for the quarter that ended in Sep. 2016 was 0.21.

Mendocino Brewing Co  (OTCPK:MENB) 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.

Mendocino Brewing Co's Days Inventory for the three months ended in Sep. 2016 is calculated as:

Days Inventory =Average Total Inventories (Q: Sep. 2016 )/Cost of Goods Sold (Q: Sep. 2016 )*Days in Period
=1.4085/4.639*365 / 4
=27.71

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.

Mendocino Brewing Co's Inventory to Revenue for the quarter that ended in Sep. 2016 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 )
=1.4085 / 6.832
=0.21

* 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.

Mendocino Brewing Co Inventory Turnover Related Terms

Mendocino Brewing Co Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Mendocino Brewing Co'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.

Mendocino Brewing Co Inventory Turnover Chart

Mendocino Brewing Co Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.46 15.33 12.41 10.75 11.68

Mendocino Brewing Co Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
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 3.23 3.31 3.24 3.68 3.29

Mendocino Brewing Co Inventory Turnover Calculation

Mendocino Brewing Co's Inventory Turnover for the fiscal year that ended in Dec. 2015 is calculated as

Inventory Turnover (A: Dec. 2015 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2015 ) / ((Total Inventories (A: Dec. 2014 ) + Total Inventories (A: Dec. 2015 )) / count )
=21.408 / ((2.118 + 1.547) / 2 )
=21.408 / 1.8325
=11.68

Mendocino Brewing Co's Inventory Turnover for the quarter that ended in Sep. 2016 is calculated as

Inventory Turnover (Q: Sep. 2016 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Sep. 2016 ) / ((Total Inventories (Q: Jun. 2016 ) + Total Inventories (Q: Sep. 2016 )) / count )
=4.639 / ((1.345 + 1.472) / 2 )
=4.639 / 1.4085
=3.29

* 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 3.29 mean?
Mendocino Brewing Co (MENB) has a Inventory Turnover of 3.29 as of Sep. 2016. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Mendocino Brewing Co and its competitors.
Is Mendocino Brewing Co's Inventory Turnover too high?
Mendocino Brewing Co's current Inventory Turnover is 3.29.
How does Mendocino Brewing Co's Inventory Turnover compare to SRSG?
Mendocino Brewing Co's Inventory Turnover of 3.29 can be compared against companies in the Beverages - Alcoholic 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 Beverages - Alcoholic company?
A good Inventory Turnover depends on the Beverages - Alcoholic 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 Mendocino Brewing Co and its competitors. Mendocino Brewing Co's current Inventory Turnover is 3.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mendocino Brewing Co stock overvalued right now?
Mendocino Brewing Co (MENB) has a current Inventory Turnover of 3.29. The current Inventory Turnover is 3.29. 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 Mendocino Brewing Co (MENB), the current Inventory Turnover is 3.29 as of Sep. 2016. 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.

Mendocino Brewing Co Business Description

Address 1601 Airport Road, Ukiah, CA, USA, 95482
Mendocino Brewing Co Inc belongs to the brewing industry. The company produces ales and lagers in its breweries in the United States. It functions through the segments, of brewing, tavern, and tasting room operations. The company's operations in the North American Territory consist of brewing and marketing craft beers. The firm's operations in the Foreign Territory consist of the marketing and distribution of Kingfisher Premium Lager in the Foreign Territory through Indian restaurants, chain retail grocers, liquor stores, and other retail outlets.