Farmmi (Farmmi) Inventory Turnover : 21.96 (As of Sep. 2023)

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What is Farmmi 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. Farmmi's Cost of Goods Sold for the six months ended in Sep. 2023 was $47.7 Mil. Farmmi's Average Total Inventories for the quarter that ended in Sep. 2023 was $2.2 Mil. Farmmi's Inventory Turnover for the quarter that ended in Sep. 2023 was 21.96.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Farmmi's Days Inventory for the six months ended in Sep. 2023 was 8.31.

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. Farmmi's Inventory-to-Revenue for the quarter that ended in Sep. 2023 was 0.04.

Farmmi Inventory Turnover Historical Data

The historical data trend for Farmmi'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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Farmmi Inventory Turnover Chart

Farmmi Annual Data

Trend

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Inventory Turnover

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14.43

29.96

45.70

89.82

45.94

Farmmi Semi-Annual Data
	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Inventory Turnover	Get a 7-Day Free Trial												18.08	11.71	18.12	100.83	21.96

Farmmi Inventory Turnover Calculation

Farmmi's Inventory Turnover for the fiscal year that ended in Sep. 2023 is calculated as

	Inventory Turnover (A: Sep. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Sep. 2023 )	/ (	(Total Inventories (A: Sep. 2022 )	+	Total Inventories (A: Sep. 2023 ))	/	count )
=	106.078	/ (	(0.716	+	3.902)	/	2 )
=	106.078	/	2.309
=	45.94

Farmmi'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: Mar. 2023 )	+	Total Inventories (Q: Sep. 2023 ))	/	count )
=	47.701	/ (	(0.442	+	3.902)	/	2 )
=	47.701	/	2.172
=	21.96

Farmmi (NAS:FAMI) 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.

Farmmi's Days Inventory for the six 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
	=	2.172	/	47.701	*	365 / 2
	=	8.31

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.

Farmmi'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 )
	=	2.172	/	49.818
	=	0.04

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.

Farmmi Inventory Turnover Related Terms

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Farmmi (Farmmi) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Farmmi Inc (NAS:FAMI) » Definitions » Inventory Turnover

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Address

888 Tianning Street, Floor 1, Building No. 1, Liandu District, Zhejiang Province, Lishui, CHN, 323000

Website

https://www.farmmi.com

Farmmi Inc is a supplier of agricultural products. The products of the company are Shiitake Mushroom, Mu Er Mushroom and other edible fungi and other agricultural products. The majority of products are sold in mainland China.