VFRM (Veritas Farms) Inventory Turnover: 0.09 (As of Sep. 2023)

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VFRM Veritas Farms Inc VFRM
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What is Veritas Farms Inventory Turnover?

Veritas Farms VFRM 12 Inventory Turnover is 0.09 as of Sep. 2023. GuruFocus rates VFRM 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. Veritas Farms's Cost of Goods Sold for the three months ended in Sep. 2023 was $0.18 Mil. Veritas Farms's Average Total Inventories for the quarter that ended in Sep. 2023 was $1.99 Mil. Veritas Farms's Inventory Turnover for the quarter that ended in Sep. 2023 was 0.09.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Veritas Farms's Days Inventory for the three months ended in Sep. 2023 was 990.79.

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. Veritas Farms's Inventory-to-Revenue for the quarter that ended in Sep. 2023 was 8.42.

Veritas Farms  (OTCPK:VFRM) 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.

Veritas Farms'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
=1.987/0.183*365 / 4
=990.79

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.

Veritas Farms'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 )
=1.987 / 0.236
=8.42

* 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.

Veritas Farms Inventory Turnover Related Terms

Veritas Farms Inventory Turnover Historical Data

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The historical data trend for Veritas Farms'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.

Veritas Farms Inventory Turnover Chart

Veritas Farms Annual Data
Trend Jan16 Jan17 Dec18 Dec19 Dec20 Dec21 Dec22
Inventory Turnover
Get a 7-Day Free Trial 0.48 0.84 0.52 0.90 0.90

Veritas Farms 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 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 0.50 0.07 0.29 0.09
VFRM
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Veritas Farms Inc VFRM
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Veritas Farms Inventory Turnover Calculation

Veritas Farms'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 )
=2.446 / ((3.212 + 2.243) / 2 )
=2.446 / 2.7275
=0.90

Veritas Farms'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 )
=0.183 / ((1.683 + 2.291) / 2 )
=0.183 / 1.987
=0.09

* 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 0.09 mean?
Veritas Farms (VFRM) has a Inventory Turnover of 0.09 as of Sep. 2023. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Veritas Farms and its competitors.
Is Veritas Farms' Inventory Turnover too high?
Veritas Farms' current Inventory Turnover is 0.09. Overall, Veritas Farms has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Veritas Farms' Inventory Turnover compare to STMH and NXEN?
Veritas Farms' Inventory Turnover of 0.09 can be compared against companies in the Drug Manufacturers 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 Drug Manufacturers company?
A good Inventory Turnover depends on the Drug Manufacturers 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 Veritas Farms and its competitors. Veritas Farms's current Inventory Turnover is 0.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Veritas Farms stock overvalued right now?
Veritas Farms (VFRM) has a current Inventory Turnover of 0.09. The current Inventory Turnover is 0.09. Veritas Farms' 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 Veritas Farms (VFRM), the current Inventory Turnover is 0.09 as of Sep. 2023. 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.

Veritas Farms Business Description

Address 401 E. Las Olas Boulevard, Suite 1400, Fort Lauderdale, FL, USA, 33001
Veritas Farms Inc is engaged in producing natural rich-hemp products, using strict natural protocols and materials yielding broad spectrum phytocannabinoid rich hemp oils, distillates and isolates. Its products include Full Spectrum CBD Tincture, Full Spectrum CBD Salve, Full Spectrum CBD Capsules, Full Spectrum CBD Lotion and Others.
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Inventory Turnover is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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