VGFCQ (The Very Good Food Co) Inventory Turnover: 0.26 (As of Sep. 2022)


VGFCQ The Very Good Food Co Inc VGFCQ
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What is The Very Good Food Co Inventory Turnover?

The Very Good Food Co VGFCQ -99.98% 12 Inventory Turnover is 0.26 as of Sep. 2022. GuruFocus rates VGFCQ 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. The Very Good Food Co's Cost of Goods Sold for the three months ended in Sep. 2022 was $1.92 Mil. The Very Good Food Co's Average Total Inventories for the quarter that ended in Sep. 2022 was $7.51 Mil. The Very Good Food Co's Inventory Turnover for the quarter that ended in Sep. 2022 was 0.26.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. The Very Good Food Co's Days Inventory for the three months ended in Sep. 2022 was 357.26.

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. The Very Good Food Co's Inventory-to-Revenue for the quarter that ended in Sep. 2022 was 5.70.

The Very Good Food Co  (OTCPK:VGFCQ) 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.

The Very Good Food Co'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
=7.5055/1.917*365 / 4
=357.26

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.

The Very Good Food Co'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 )
=7.5055 / 1.317
=5.70

* 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.

The Very Good Food Co Inventory Turnover Related Terms

The Very Good Food Co Inventory Turnover Historical Data

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The historical data trend for The Very Good Food Co'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.

The Very Good Food Co Inventory Turnover Chart

The Very Good Food Co Annual Data
Trend Dec19 Dec20 Dec21
Inventory Turnover
20.65 6.09 1.83

The Very Good Food Co Quarterly Data
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 0.46 0.38 0.28 0.28 0.26
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The Very Good Food Co Inc VGFCQ
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The Very Good Food Co Inventory Turnover Calculation

The Very Good Food Co'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 )
=6.922 / ((0.934 + 6.62) / 2 )
=6.922 / 3.777
=1.83

The Very Good Food Co'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 )
=1.917 / ((8.206 + 6.805) / 2 )
=1.917 / 7.5055
=0.26

* 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 0.26 mean?
The Very Good Food Co (VGFCQ) has a Inventory Turnover of 0.26 as of Sep. 2022. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on The Very Good Food Co and its competitors.
Is The Very Good Food Co's Inventory Turnover too high?
The Very Good Food Co's current Inventory Turnover is 0.26. Overall, The Very Good Food Co has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does The Very Good Food Co's Inventory Turnover compare to KHC and GIS?
The Very Good Food Co's Inventory Turnover of 0.26 can be compared against companies in the Consumer Packaged Goods 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 Consumer Packaged Goods company?
A good Inventory Turnover depends on the Consumer Packaged Goods 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 The Very Good Food Co and its competitors. The Very Good Food Co's current Inventory Turnover is 0.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Very Good Food Co stock overvalued right now?
The Very Good Food Co (VGFCQ) has a current Inventory Turnover of 0.26. The current Inventory Turnover is 0.26. The Very Good Food Co's 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 The Very Good Food Co (VGFCQ), the current Inventory Turnover is 0.26 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.

The Very Good Food Co Business Description

Address 2748 Rupert Street, Vancouver, BC, CAN, M4W 3P4
The Very Good Food Co Inc operates in the food industry. The company is a food technology company that designs, develops, produces, distributes, and sells a variety of plant-based meat and other food alternatives.
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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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