RMHB (Rocky Mountain High Brands) Inventory Turnover: 3.99 (As of Jun. 2020)


What is Rocky Mountain High Brands Inventory Turnover?

Rocky Mountain High Brands RMHB -10.00% Inventory Turnover is 3.99 as of Jun. 2020.

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. Rocky Mountain High Brands's Cost of Goods Sold for the three months ended in Jun. 2020 was $0.74 Mil. Rocky Mountain High Brands's Average Total Inventories for the quarter that ended in Jun. 2020 was $0.19 Mil. Rocky Mountain High Brands's Inventory Turnover for the quarter that ended in Jun. 2020 was 3.99.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Rocky Mountain High Brands's Days Inventory for the three months ended in Jun. 2020 was 22.87.

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. Rocky Mountain High Brands's Inventory-to-Revenue for the quarter that ended in Jun. 2020 was 0.28.

Rocky Mountain High Brands  (OTCPK:RMHB) 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.

Rocky Mountain High Brands's Days Inventory for the three months ended in Jun. 2020 is calculated as:

Days Inventory =Average Total Inventories (Q: Jun. 2020 )/Cost of Goods Sold (Q: Jun. 2020 )*Days in Period
=0.186/0.742*365 / 4
=22.87

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.

Rocky Mountain High Brands's Inventory to Revenue for the quarter that ended in Jun. 2020 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Jun. 2020 ) / Revenue (Q: Jun. 2020 )
=0.186 / 0.669
=0.28

* 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.

Rocky Mountain High Brands Inventory Turnover Related Terms

Rocky Mountain High Brands Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Rocky Mountain High Brands'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.

Rocky Mountain High Brands Inventory Turnover Chart

Rocky Mountain High Brands Annual Data
Trend Dec09 Jun10 Jun11 Jun12 Jun16 Jun17 Dec18 Dec19
Inventory Turnover
Get a 7-Day Free Trial 0.00 3.91 0.00 2.21 3.85

Rocky Mountain High Brands Quarterly Data
Dec09 Jun10 Dec10 Jun11 Jun12 Jun16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20
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 0.10 1.41 0.64 0.94 3.99

Rocky Mountain High Brands Inventory Turnover Calculation

Rocky Mountain High Brands's Inventory Turnover for the fiscal year that ended in Dec. 2019 is calculated as

Inventory Turnover (A: Dec. 2019 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2019 ) / ((Total Inventories (A: Dec. 2018 ) + Total Inventories (A: Dec. 2019 )) / count )
=0.741 / ((0.147 + 0.238) / 2 )
=0.741 / 0.1925
=3.85

Rocky Mountain High Brands's Inventory Turnover for the quarter that ended in Jun. 2020 is calculated as

Inventory Turnover (Q: Jun. 2020 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Jun. 2020 ) / ((Total Inventories (Q: Mar. 2020 ) + Total Inventories (Q: Jun. 2020 )) / count )
=0.742 / ((0.222 + 0.15) / 2 )
=0.742 / 0.186
=3.99

* 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 3.99 mean?
Rocky Mountain High Brands (RMHB) has a Inventory Turnover of 3.99 as of Jun. 2020. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Rocky Mountain High Brands and its competitors.
Is Rocky Mountain High Brands' Inventory Turnover too high?
Rocky Mountain High Brands' current Inventory Turnover is 3.99.
How does Rocky Mountain High Brands' Inventory Turnover compare to MOJO and CIRX?
Rocky Mountain High Brands' Inventory Turnover of 3.99 can be compared against companies in the Beverages - Non-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 - Non-Alcoholic company?
A good Inventory Turnover depends on the Beverages - Non-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 Rocky Mountain High Brands and its competitors. Rocky Mountain High Brands's current Inventory Turnover is 3.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rocky Mountain High Brands stock overvalued right now?
Rocky Mountain High Brands (RMHB) has a current Inventory Turnover of 3.99. The current Inventory Turnover is 3.99. 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 Rocky Mountain High Brands (RMHB), the current Inventory Turnover is 3.99 as of Jun. 2020. 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.

Rocky Mountain High Brands Business Description

Address 12150 Shiloh Road, Suite 120, Dallas, TX, USA, 75228
Rocky Mountain High Brands Inc is a Dallas-based consumer goods company that offers energy drinks. The company specializes in developing, manufacturing, marketing, and distributing high-quality, health-conscious, cannabidiol and hemp-infused products that span various categories including beverage, food, fitness, skincare, and more. The company delivers a fresh line of clean-label energy drinks supercharged with hempseed, guarana, ginseng, and pure beet sugar.