Cocoa Processing Co (XGHA:CPC) Inventory Turnover: 2.13 (As of Sep. 2022)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Cocoa Processing Co Inventory Turnover?

Cocoa Processing Co XGHA:CPC Inventory Turnover is 2.13 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. Cocoa Processing Co's Cost of Goods Sold for the six months ended in Sep. 2022 was GHS553.5 Mil. Cocoa Processing Co's Average Total Inventories for the quarter that ended in Sep. 2022 was GHS259.8 Mil. Cocoa Processing Co's Inventory Turnover for the quarter that ended in Sep. 2022 was 2.13.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Cocoa Processing Co's Days Inventory for the six months ended in Sep. 2022 was 85.66.

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. Cocoa Processing Co's Inventory-to-Revenue for the quarter that ended in Sep. 2022 was 0.51.

Cocoa Processing Co  (XGHA:CPC) 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.

Cocoa Processing Co's Days Inventory for the six 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
=259.8125/553.541*365 / 2
=85.66

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.

Cocoa Processing 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 )
=259.8125 / 508.266
=0.51

* 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.

Cocoa Processing Co Inventory Turnover Related Terms

Cocoa Processing Co Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Cocoa Processing 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.

Cocoa Processing Co Inventory Turnover Chart

Cocoa Processing Co Annual Data
Trend Sep10 Sep11 Sep12 Sep13 Sep14 Sep21 Sep22
Inventory Turnover
Get a 7-Day Free Trial 1.63 2.35 1.83 3.07 2.13

Cocoa Processing Co Semi-Annual Data
Sep10 Sep11 Sep12 Sep13 Sep14 Sep21 Sep22
Inventory Turnover Get a 7-Day Free Trial 1.63 2.35 1.83 3.07 2.13

Cocoa Processing Co Inventory Turnover Calculation

Cocoa Processing Co's Inventory Turnover for the fiscal year that ended in Sep. 2022 is calculated as

Inventory Turnover (A: Sep. 2022 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Sep. 2022 ) / ((Total Inventories (A: Sep. 2021 ) + Total Inventories (A: Sep. 2022 )) / count )
=553.541 / ((313.07 + 206.555) / 2 )
=553.541 / 259.8125
=2.13

Cocoa Processing 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: Sep. 2021 ) + Total Inventories (Q: Sep. 2022 )) / count )
=553.541 / ((313.07 + 206.555) / 2 )
=553.541 / 259.8125
=2.13

* 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 2.13 mean?
Cocoa Processing Co (XGHA:CPC) has a Inventory Turnover of 2.13 as of Sep. 2022. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Cocoa Processing Co and its competitors.
Is Cocoa Processing Co's Inventory Turnover too high?
Cocoa Processing Co's current Inventory Turnover is 2.13.
How does Cocoa Processing Co's Inventory Turnover compare to MDLZ and HSY?
Cocoa Processing Co's Inventory Turnover of 2.13 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 Cocoa Processing Co and its competitors. Cocoa Processing Co's current Inventory Turnover is 2.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cocoa Processing Co stock overvalued right now?
Cocoa Processing Co (XGHA:CPC) has a current Inventory Turnover of 2.13. The current Inventory Turnover is 2.13. 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 Cocoa Processing Co (XGHA:CPC), the current Inventory Turnover is 2.13 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.

Cocoa Processing Co Business Description

Address Heavy Industrial Area, Private Mail Bag, Tema, GHA
Cocoa Processing Co Ltd manufactures chocolates, confectionery and semi-finished cocoa products such as cocoa butter, cocoa liquor, cocoa cake and cocoa powder from premium cocoa beans grown in Ghana.