Forza Petroleum (TSX:FORZ) Inventory Turnover : 1.01 (As of Sep. 2023)

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What is Forza Petroleum Inventory Turnover?

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. Forza Petroleum's Cost of Goods Sold for the three months ended in Sep. 2023 was C$14.8 Mil. Forza Petroleum's Average Total Inventories for the quarter that ended in Sep. 2023 was C$14.5 Mil. Forza Petroleum's Inventory Turnover for the quarter that ended in Sep. 2023 was 1.01.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Forza Petroleum's Days Inventory for the three months ended in Sep. 2023 was 89.93.

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. Forza Petroleum's Inventory-to-Revenue for the quarter that ended in Sep. 2023 was 0.75.

Forza Petroleum Inventory Turnover Historical Data

The historical data trend for Forza Petroleum'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.

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Forza Petroleum Inventory Turnover Chart

Forza Petroleum Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Inventory Turnover

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5.13

9.28

6.24

12.80

16.80

Forza Petroleum Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Inventory Turnover	Get a 7-Day Free Trial															3.98	2.80	2.69	0.11	1.01

Forza Petroleum Inventory Turnover Calculation

Forza Petroleum'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 )
=	246.892	/ (	(11.782	+	17.618)	/	2 )
=	246.892	/	14.7
=	16.80

Forza Petroleum's Inventory Turnover for the quarter that ended in Sep. 2023 is calculated as

	Inventory Turnover (Q: Sep. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2023 )	/ (	(Total Inventories (Q: Jun. 2023 )	+	Total Inventories (Q: Sep. 2023 ))	/	count )
=	14.762	/ (	(14.316	+	14.781)	/	2 )
=	14.762	/	14.5485
=	1.01

Forza Petroleum (TSX:FORZ) 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.

Forza Petroleum's Days Inventory for the three months ended in Sep. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2023 )	/	Cost of Goods Sold (Q: Sep. 2023 )	*	Days in Period
	=	14.5485	/	14.762	*	365 / 4
	=	89.93

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.

Forza Petroleum's Inventory to Revenue for the quarter that ended in Sep. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	14.5485	/	19.506
	=	0.75

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.

Forza Petroleum Inventory Turnover Related Terms

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Forza Petroleum (TSX:FORZ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Forza Petroleum Ltd (TSX:FORZ) » Definitions » Inventory Turnover

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ORXPF:USA OYX0:Germany

Address

7th Avenue SW, 3400 First Canadian Centre 350, Calgary, AB, CAN, T2P 3N9

Website

https://www.forzapetroleum.com

Forza Petroleum Ltd is engaged in the acquisition and development of exploration and production assets to produce hydrocarbons and to increase oil and gas reserves. The company holds interests in and operates the Hawler license area in the Kurdistan Region of Iraq.

Executives

Yann Hervé Didier Marie Chiffoleau

Senior Officer