Ascend Wellness Holdings (Ascend Wellness Holdings) Inventory Turnover : 0.89 (As of Mar. 2024)

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What is Ascend Wellness 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. Ascend Wellness Holdings's Cost of Goods Sold for the three months ended in Mar. 2024 was $90.4 Mil. Ascend Wellness Holdings's Average Total Inventories for the quarter that ended in Mar. 2024 was $101.1 Mil. Ascend Wellness Holdings's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.89.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Ascend Wellness Holdings's Days Inventory for the three months ended in Mar. 2024 was 102.04.

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. Ascend Wellness Holdings's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.71.

Ascend Wellness Holdings Inventory Turnover Historical Data

The historical data trend for Ascend Wellness 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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Ascend Wellness Holdings Inventory Turnover Chart

Ascend Wellness Holdings Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

2.86

4.15

3.33

3.77

Ascend Wellness Holdings Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial													0.80	1.01	1.09	1.00	0.89

Ascend Wellness Holdings Inventory Turnover Calculation

Ascend Wellness Holdings's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	363.47	/ (	(97.532	+	95.294)	/	2 )
=	363.47	/	96.413
=	3.77

Ascend Wellness Holdings's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	90.373	/ (	(95.294	+	106.819)	/	2 )
=	90.373	/	101.0565
=	0.89

Ascend Wellness Holdings (OTCPK:AAWH) 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.

Ascend Wellness Holdings's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	101.0565	/	90.373	*	365 / 4
	=	102.04

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.

Ascend Wellness Holdings's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	101.0565	/	142.41
	=	0.71

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.

Ascend Wellness Holdings Inventory Turnover Related Terms

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Ascend Wellness Holdings (Ascend Wellness Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Ascend Wellness Holdings Inc (OTCPK:AAWH) » Definitions » Inventory Turnover

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Traded in Other Exchanges

AAWH.U:Canada

Address

1411 Broadway, 16th Floor, New York, NY, USA, 10018

Website

https://www.awholdings.com

Ascend Wellness Holdings Inc is a vertically integrated multi-state operator focused on adult-use or near-term adult-use cannabis states in limited license markets. The company's core business is the cultivation, manufacturing, and distribution of cannabis consumer packaged goods, which it sells through company-owned retail stores and third-party licensed cannabis retail stores. It generates maximum revenue from the retail product segment.