SMIT (Schmitt Industries) Inventory Turnover: 0.54 (As of May. 2022)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

SMIT Schmitt Industries Inc SMIT
12 GF Score
Price $0.02
View Full Analysis

What is Schmitt Industries Inventory Turnover?

Schmitt Industries SMIT 12 Inventory Turnover is 0.54 as of May. 2022. GuruFocus rates SMIT 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. Schmitt Industries's Cost of Goods Sold for the three months ended in May. 2022 was $0.99 Mil. Schmitt Industries's Average Total Inventories for the quarter that ended in May. 2022 was $1.82 Mil. Schmitt Industries's Inventory Turnover for the quarter that ended in May. 2022 was 0.54.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Schmitt Industries's Days Inventory for the three months ended in May. 2022 was 168.42.

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. Schmitt Industries's Inventory-to-Revenue for the quarter that ended in May. 2022 was 1.37.

Schmitt Industries  (OTCPK:SMIT) 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.

Schmitt Industries's Days Inventory for the three months ended in May. 2022 is calculated as:

Days Inventory =Average Total Inventories (Q: May. 2022 )/Cost of Goods Sold (Q: May. 2022 )*Days in Period
=1.818/0.985*365 / 4
=168.42

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.

Schmitt Industries's Inventory to Revenue for the quarter that ended in May. 2022 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: May. 2022 ) / Revenue (Q: May. 2022 )
=1.818 / 1.323
=1.37

* 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.

Schmitt Industries Inventory Turnover Related Terms

Schmitt Industries Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Schmitt Industries'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.

Schmitt Industries Inventory Turnover Chart

Schmitt Industries Annual Data
Trend May13 May14 May15 May16 May17 May18 May19 May20 May21 May22
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.58 0.85 1.95 3.06 3.58

Schmitt Industries Quarterly Data
Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22
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 0.45 0.96 0.73 0.51 0.54
SMIT
12GF Score
Schmitt Industries Inc SMIT
Inventory Turnover is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Schmitt Industries Inventory Turnover Calculation

Schmitt Industries's Inventory Turnover for the fiscal year that ended in May. 2022 is calculated as

Inventory Turnover (A: May. 2022 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: May. 2022 ) / ((Total Inventories (A: May. 2021 ) + Total Inventories (A: May. 2022 )) / count )
=4.824 / ((1.251 + 1.444) / 2 )
=4.824 / 1.3475
=3.58

Schmitt Industries's Inventory Turnover for the quarter that ended in May. 2022 is calculated as

Inventory Turnover (Q: May. 2022 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: May. 2022 ) / ((Total Inventories (Q: Feb. 2022 ) + Total Inventories (Q: May. 2022 )) / count )
=0.985 / ((2.192 + 1.444) / 2 )
=0.985 / 1.818
=0.54

* 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 0.54 mean?
Schmitt Industries (SMIT) has a Inventory Turnover of 0.54 as of May. 2022. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Schmitt Industries and its competitors.
Is Schmitt Industries' Inventory Turnover too high?
Schmitt Industries' current Inventory Turnover is 0.54. Overall, Schmitt Industries has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Schmitt Industries' Inventory Turnover compare to WHD and VAL?
Schmitt Industries' Inventory Turnover of 0.54 can be compared against companies in the Hardware 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 Hardware company?
A good Inventory Turnover depends on the Hardware 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 Schmitt Industries and its competitors. Schmitt Industries's current Inventory Turnover is 0.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Schmitt Industries stock overvalued right now?
Schmitt Industries (SMIT) has a current Inventory Turnover of 0.54. The current Inventory Turnover is 0.54. Schmitt Industries' 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 Schmitt Industries (SMIT), the current Inventory Turnover is 0.54 as of May. 2022. 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.

Schmitt Industries Business Description

Address 2765 North West Nicolai Street, Portland, OR, USA, 97210
Schmitt Industries Inc is engaged in propane tank monitoring solutions, precision measurement solutions, and ice cream production and distribution. The Company operates as two reportable segments: the Measurement Segment and the Ice Cream Segment. The company manufactures and sells products in two core product lines, Acuity Lasers and Xact Tank Monitoring.
12GF Score

Get the complete analysis for SMIT

Inventory Turnover is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$0.02
Price