STCC (Sterling Consolidated) Inventory Turnover: 0.98 (As of Sep. 2022)


What is Sterling Consolidated Inventory Turnover?

Sterling Consolidated STCC Inventory Turnover is 0.98 as of Sep. 2022.

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. Sterling Consolidated's Cost of Goods Sold for the three months ended in Sep. 2022 was $4.11 Mil. Sterling Consolidated's Average Total Inventories for the quarter that ended in Sep. 2022 was $4.18 Mil. Sterling Consolidated's Inventory Turnover for the quarter that ended in Sep. 2022 was 0.98.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Sterling Consolidated's Days Inventory for the three months ended in Sep. 2022 was 92.99.

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. Sterling Consolidated's Inventory-to-Revenue for the quarter that ended in Sep. 2022 was 0.88.

Sterling Consolidated  (OTCPK:STCC) 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.

Sterling Consolidated's Days Inventory for the three months ended in Sep. 2022 is calculated as:

Days Inventory =Average Total Inventories (Q: Sep. 2022 )/Cost of Goods Sold (Q: Sep. 2022 )*Days in Period
=4.1835/4.105*365 / 4
=92.99

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.

Sterling Consolidated's Inventory to Revenue for the quarter that ended in Sep. 2022 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Sep. 2022 ) / Revenue (Q: Sep. 2022 )
=4.1835 / 4.728
=0.88

* 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.

Sterling Consolidated Inventory Turnover Related Terms

Sterling Consolidated Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Sterling Consolidated'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.

Sterling Consolidated Inventory Turnover Chart

Sterling Consolidated Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.08 1.96 2.50 2.12 2.41

Sterling Consolidated Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
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 0.67 0.65 0.66 0.77 0.98

Sterling Consolidated Inventory Turnover Calculation

Sterling Consolidated's Inventory Turnover for the fiscal year that ended in Dec. 2021 is calculated as

Inventory Turnover (A: Dec. 2021 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2021 ) / ((Total Inventories (A: Dec. 2020 ) + Total Inventories (A: Dec. 2021 )) / count )
=7.707 / ((3.046 + 3.353) / 2 )
=7.707 / 3.1995
=2.41

Sterling Consolidated's Inventory Turnover for the quarter that ended in Sep. 2022 is calculated as

Inventory Turnover (Q: Sep. 2022 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Sep. 2022 ) / ((Total Inventories (Q: Jun. 2022 ) + Total Inventories (Q: Sep. 2022 )) / count )
=4.105 / ((4.277 + 4.09) / 2 )
=4.105 / 4.1835
=0.98

* 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 0.98 mean?
Sterling Consolidated (STCC) has a Inventory Turnover of 0.98 as of Sep. 2022. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Sterling Consolidated and its competitors.
Is Sterling Consolidated's Inventory Turnover too high?
Sterling Consolidated's current Inventory Turnover is 0.98.
How does Sterling Consolidated's Inventory Turnover compare to AMTY and OMTK?
Sterling Consolidated's Inventory Turnover of 0.98 can be compared against companies in the Chemicals 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 Chemicals company?
A good Inventory Turnover depends on the Chemicals 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 Sterling Consolidated and its competitors. Sterling Consolidated's current Inventory Turnover is 0.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sterling Consolidated stock overvalued right now?
Sterling Consolidated (STCC) has a current Inventory Turnover of 0.98. The current Inventory Turnover is 0.98. 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 Sterling Consolidated (STCC), the current Inventory Turnover is 0.98 as of Sep. 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.

Sterling Consolidated Business Description

Address 1105 Green Grove Road, Neptune, NJ, USA, 07753
Sterling Consolidated Corp is engaged in the distribution and sale of O-rings used for sealing purposes. It also distributes rubber seals, oil seals, custom molded rubber parts, custom Teflon parts, Teflon rods, O-ring cord, bonded seals, O-ring kits, and stuffing box sealantsbna. These are used in different industries such as automotive, pump, transmissions, oil and energy, machinery, and packaging. It is mainly used as seals to prevent leakage of liquids or air. The company generates its key revenues through the sale of O-rings and rubber seal products in the USA.