Fire & Flower Holdings (TSX:FAF) Inventory Turnover : 2.33 (As of Mar. 2023)

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What is Fire & Flower Holdings 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. Fire & Flower Holdings's Cost of Goods Sold for the three months ended in Mar. 2023 was C$30.6 Mil. Fire & Flower Holdings's Average Total Inventories for the quarter that ended in Mar. 2023 was C$12.7 Mil. Fire & Flower Holdings's Inventory Turnover for the quarter that ended in Mar. 2023 was 2.33.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Fire & Flower Holdings's Days Inventory for the three months ended in Mar. 2023 was 37.72.

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. Fire & Flower Holdings's Inventory-to-Revenue for the quarter that ended in Mar. 2023 was 0.29.

Fire & Flower Holdings Inventory Turnover Historical Data

The historical data trend for Fire & Flower Holdings'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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Fire & Flower Holdings Inventory Turnover Chart

Fire & Flower Holdings Annual Data

Trend

Jan20

Jan21

Jan22

Inventory Turnover

5.53

10.52

10.17

Fire & Flower Holdings Quarterly Data
	Feb18	May18	Aug18	Nov18	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Mar23
Inventory Turnover	Get a 7-Day Free Trial															2.33	2.28	2.63	2.77	2.33

Fire & Flower Holdings Inventory Turnover Calculation

Fire & Flower Holdings's Inventory Turnover for the fiscal year that ended in Jan. 2022 is calculated as

	Inventory Turnover (A: Jan. 2022 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jan. 2022 )	/ (	(Total Inventories (A: Jan. 2021 )	+	Total Inventories (A: Jan. 2022 ))	/	count )
=	113.405	/ (	(9.838	+	12.458)	/	2 )
=	113.405	/	11.148
=	10.17

Fire & Flower Holdings's Inventory Turnover for the quarter that ended in Mar. 2023 is calculated as

	Inventory Turnover (Q: Mar. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2023 )	/ (	(Total Inventories (Q: Oct. 2022 )	+	Total Inventories (Q: Mar. 2023 ))	/	count )
=	30.645	/ (	(12.195	+	13.139)	/	2 )
=	30.645	/	12.667
=	2.42

Fire & Flower Holdings (TSX:FAF) 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.

Fire & Flower Holdings's Days Inventory for the three months ended in Mar. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2023 )	/	Cost of Goods Sold (Q: Mar. 2023 )	*	Days in Period
	=	12.667	/	30.645	*	365 / 4
	=	37.72

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.

Fire & Flower Holdings's Inventory to Revenue for the quarter that ended in Mar. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2023 )	/	Revenue (Q: Mar. 2023 )
	=	12.667	/	43.108
	=	0.29

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.

Fire & Flower Holdings Inventory Turnover Related Terms

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Fire & Flower Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Fire & Flower Holdings Corp (TSX:FAF) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

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Address

130 King Street West, Suite 2500, Toronto, ON, CAN, M5X 1C8

Website

https://www.fireandflower.com

Fire & Flower Holdings Corp is an independent adult-use cannabis retailer focused on the Canadian market and international expansion opportunities. The company guides consumers through the complex world of cannabis through education-focused, retailing while the Hifyrea digital platform connects consumers with cannabis products. The company has three reportable segments namely, Retail segment, Wholesale and Logistics segment, and Digital Platform. Majority of the revenue is earned from Retail segment.