Cbdmd(Ycbd) Financials: Inventory Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - inventory turnover
This chart shows the historical trend of inventory turnover for YCBD compared to its industry average over the recent years.
Ratio Definition and Interpretation
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 '2021', YCBD's inventory turnover was 2.89, reflecting efficiency in managing inventory stock. Industry average for Package Goods/Cosmetics in '2021' stood at 3.71.
• In '2022', YCBD's inventory turnover was 2.82, reflecting efficiency in managing inventory stock. The decline from '2021' may indicate some operational or financial challenges. Industry average for Package Goods/Cosmetics in '2022' stood at 3.31. Industry average declined by 0.40 from previous year.
• In '2023', YCBD's inventory turnover was 2.21, reflecting efficiency in managing inventory stock. The decline from '2022' may indicate some operational or financial challenges. Industry average for Package Goods/Cosmetics in '2023' stood at 3.17. Industry average declined by 0.14 from previous year.
• In '2024', YCBD's inventory turnover was 2.33, reflecting efficiency in managing inventory stock. The increase since '2023' reflects strengthening financial performance. Industry average for Package Goods/Cosmetics in '2024' stood at 3.50. Industry average increased by 0.32 compared to previous year.
Overall, YCBD's inventory turnover has consistently declined during the past 4 years.
Formula: Inventory Turnover = Cost of Goods Sold / Average Inventory
Good Range: Typically 4 to 12 depending on industry.