Rocky Mountain Chocolate Factory (Rocky Mountain Chocolate Factory) Inventory-to-Revenue

: 0.45 (As of Nov. 2023)

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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. Rocky Mountain Chocolate Factory's Average Total Inventories for the quarter that ended in Nov. 2023 was $3.45 Mil. Rocky Mountain Chocolate Factory's Revenue for the three months ended in Nov. 2023 was $7.70 Mil. Rocky Mountain Chocolate Factory's Inventory-to-Revenue for the quarter that ended in Nov. 2023 was 0.45.

Rocky Mountain Chocolate Factory's Inventory-to-Revenue for the quarter that ended in Nov. 2023 declined from Aug. 2023 (0.45) to Aug. 2023 (0.45)

A decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Rocky Mountain Chocolate Factory's Days Inventory for the three months ended in Nov. 2023 was 49.64.

Inventory Turnover measures how fast the company turns over its inventory within a year. Rocky Mountain Chocolate Factory's Inventory Turnover for the quarter that ended in Nov. 2023 was 1.84.

Rocky Mountain Chocolate Factory Inventory-to-Revenue Historical Data

The historical data trend for Rocky Mountain Chocolate Factory's Inventory-to-Revenue 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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Rocky Mountain Chocolate Factory Annual Data

Trend

Feb14

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Inventory-to-Revenue

0.13

0.18

0.14

0.13

Rocky Mountain Chocolate Factory Quarterly Data
	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23
Inventory-to-Revenue																0.72	0.60	0.49	0.45	0.45

Competitive Comparison

For the Confectioners subindustry, Rocky Mountain Chocolate Factory's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Rocky Mountain Chocolate Factory Inventory-to-Revenue Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Rocky Mountain Chocolate Factory's Inventory-to-Revenue distribution charts can be found below:

* The bar in red indicates where Rocky Mountain Chocolate Factory's Inventory-to-Revenue falls into.

Rocky Mountain Chocolate Factory Inventory-to-Revenue Calculation

Rocky Mountain Chocolate Factory's Inventory-to-Revenue for the fiscal year that ended in Feb. 2023 is calculated as

	Inventory-to-Revenue (A: Feb. 2023 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Feb. 2022 )	+	Total Inventories (A: Feb. 2023 ))	/	count )	/	Revenue (A: Feb. 2023 )
=	( (4.298	+	3.64)	/	2 )	/	30.432
=	3.969					/	30.432
=	0.13

Rocky Mountain Chocolate Factory's Inventory-to-Revenue for the quarter that ended in Nov. 2023 is calculated as

	Inventory-to-Revenue (Q: Nov. 2023 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Aug. 2023 )	+	Total Inventories (Q: Nov. 2023 ))	/	count )	/	Revenue (Q: Nov. 2023 )
=	( (3.233	+	3.67)	/	2 )	/	7.697
=	3.4515					/	7.697
=	0.45

Rocky Mountain Chocolate Factory (NAS:RMCF) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

More Related Terms:

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Rocky Mountain Chocolate Factory's Days Inventory for the three months ended in Nov. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Nov. 2023 )	/	Cost of Goods Sold (Q: Nov. 2023 )	*	Days in Period
	=	3.4515	/	6.345	*	365 / 4
	=	49.64

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

Rocky Mountain Chocolate Factory's Inventory Turnover for the quarter that ended in Nov. 2023 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Nov. 2023 )	/	Average Total Inventories (Q: Nov. 2023 )
	=	6.345	/	3.4515
	=	1.84

Rocky Mountain Chocolate Factory Inventory-to-Revenue Related Terms

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Rocky Mountain Chocolate Factory (Rocky Mountain Chocolate Factory) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Rocky Mountain Chocolate Factory Inc (NAS:RMCF) » Definitions » Inventory-to-Revenue

Comparable Companies

Traded in Other Exchanges

RMFA:Germany

Address

265 Turner Drive, Durango, CO, USA, 81303

Website

https://www.rmcf.com

Rocky Mountain Chocolate Factory Inc operates as a manufacturer of chocolate candies and confectionery products. The business activity of the firm functions through Franchising, Manufacturing, Retail Stores, U-Swirl Operations, and Other segments. Its products include varieties of Clusters, Caramels, Creams, Toffees, Mints, and Truffles. Geographically, the company and its subsidiaries have stores in Canada, South Korea, Panama, the Philippines, Qatar, and other countries.

Executives

Robert J Sarlls	director, officer: Chief Executive Officer	1703 N. RANDALL ROAD, ELGIN IL 60123-7820
Global Value Investment Corp.	10 percent owner	1433 N WATER STREET, SUITE 549, MILWAUKEE WI 53202
Geygan Jeffrey Richart Geygan	director	1433 N WATER STREET, SUITE 549, MILWAUKEE WI 53202
Brett P Seabert	director	265 TURNER DRIVE, DURANGO CO 81303
A Allen Arroyo	officer: CFO	C/O ROCKY MOUNTAIN CHOCOLATE FACTORY, 265 TURNER DRIVE, DURANGO CO 81303
Gvp 2021-a, Llc	other: GVIC-Controlled Entity	1433 N WATER STREET, SUITE 400, MILWAUKEE WI 53202
Gvp 2021-a, L.p.	other: GVIC-Controlled Entity	1433 N WATER STREET, SUITE 400, MILWAUKEE WI 53202
Kathleen Geygan	other: Director of GVIC	1433 N WATER STREET, SUITE 549, MILWAUKEE WI 53202
Stacy Wilke	other: Officer of GVIC	1433 N WATER STREET, SUITE 549, MILWAUKEE WI 53202
James Geygan	other: Officer of GVIC	1433 N WATER STREET, SUITE 549, MILWAUKEE WI 53202
Mark O Riegel	director	265 TURNER DRIVE, DURANGO CO 81303
Andrew Berger	other: See Explanation of Responses	84 ELM STREET, WESTFIELD NJ 07090
Richard Degnan	other: See footnote 1	2101 FREDRICK DOUGLAS BLVD, NEW YORK NY 10026
Suchit Majmudar	other: See footnote 1	1200 SOUTH GARFIELD STREET, DENVER CO 80210
Mary Bradley	other: See footnote 1	103 ST ANDREWS PLACE, NEWTOWN PA 18940