Name: Inventory Turnover

Definition: Inventory turnover measures how quickly the company sells and replaces its inventory. A higher turnover means products are selling fast and inventory isn’t sitting idle. Slow turnover may suggest weak sales, poor demand forecasting, or obsolete inventory piling up — all of which can tie up cash unnecessarily.

Interpretation:
• In '2020', OGI's inventory turnover was 2.00, reflecting efficiency in managing inventory stock. Industry average for Biotechnology: Pharmaceutical Preparations in '2020' stood at 1.56.
• In '2021', OGI's inventory turnover was 1.78, reflecting efficiency in managing inventory stock. The decline from '2020' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2021' stood at 2.23. Industry average increased by 0.67 compared to previous year.
• In '2022', OGI's inventory turnover was 1.95, reflecting efficiency in managing inventory stock. The increase since '2021' reflects strengthening financial performance. Industry average for Biotechnology: Pharmaceutical Preparations in '2022' stood at 2.20. Industry average declined by 0.03 from previous year.
• In '2024', OGI's inventory turnover was 1.36, reflecting efficiency in managing inventory stock. The decline from '2022' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2024' stood at 2.28. Industry average increased by 0.07 compared to previous year.
Overall, OGI's inventory turnover has been volatile but showed a downward trend over the past 4 years.

Formula: Inventory Turnover = Cost of Goods Sold / Average Inventory

Good Range: Typically 4 to 12 depending on industry.