Viemed Healthcare (TSX:VMD) Inventory Turnover : 4.65 (As of Mar. 2024)

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What is Viemed Healthcare 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. Viemed Healthcare's Cost of Goods Sold for the three months ended in Mar. 2024 was C$28.1 Mil. Viemed Healthcare's Average Total Inventories for the quarter that ended in Mar. 2024 was C$6.0 Mil. Viemed Healthcare's Inventory Turnover for the quarter that ended in Mar. 2024 was 4.65.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Viemed Healthcare's Days Inventory for the three months ended in Mar. 2024 was 19.61.

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. Viemed Healthcare's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.09.

Viemed Healthcare Inventory Turnover Historical Data

The historical data trend for Viemed Healthcare'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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Viemed Healthcare Inventory Turnover Chart

Viemed Healthcare Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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11.26

27.61

18.31

18.39

17.03

Viemed Healthcare Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															4.45	4.29	4.16	3.99	4.65

Viemed Healthcare Inventory Turnover Calculation

Viemed Healthcare's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	94.214	/ (	(4.855	+	6.209)	/	2 )
=	94.214	/	5.532
=	17.03

Viemed Healthcare's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	28.143	/ (	(6.209	+	5.887)	/	2 )
=	28.143	/	6.048
=	4.65

Viemed Healthcare (TSX:VMD) 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.

Viemed Healthcare's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	6.048	/	28.143	*	365 / 4
	=	19.61

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.

Viemed Healthcare's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	6.048	/	68.483
	=	0.09

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.

Viemed Healthcare Inventory Turnover Related Terms

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Viemed Healthcare (TSX:VMD) Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Viemed Healthcare Inc (TSX:VMD) » Definitions » Inventory Turnover

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VMD:USA VIJ:Germany

Address

625 E. Kaliste Saloom Road, Lafayette, LA, USA, 70508

Website

https://www.viemed.com

Viemed Healthcare Inc is a provider of equipment and home therapy to patients with respiratory disease, oxygen problems, sleep apnea and PAP treatment. The company also provides services such as respiratory disease management, neuromuscular care, in-home sleep testing and sleep apnea treatment, oxygen therapy, respiratory equipment rentals, and healthcare staffing services.