PharmChem (PharmChem) Inventory Turnover : 1.79 (As of Sep. 2023)

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What is PharmChem 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. PharmChem's Cost of Goods Sold for the three months ended in Sep. 2023 was $0.53 Mil. PharmChem's Average Total Inventories for the quarter that ended in Sep. 2023 was $0.30 Mil. PharmChem's Inventory Turnover for the quarter that ended in Sep. 2023 was 1.79.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. PharmChem's Days Inventory for the three months ended in Sep. 2023 was 50.89.

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. PharmChem's Inventory-to-Revenue for the quarter that ended in Sep. 2023 was 0.19.

PharmChem Inventory Turnover Historical Data

The historical data trend for PharmChem'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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PharmChem Inventory Turnover Chart

PharmChem Annual Data

Trend

Dec93

Dec94

Dec95

Dec96

Dec97

Dec98

Dec99

Dec00

Dec01

Dec02

Inventory Turnover

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19.29

18.27

14.98

15.06

13.23

PharmChem Quarterly Data
	Jun99	Sep99	Dec99	Mar00	Jun00	Sep00	Dec00	Mar01	Jun01	Sep01	Dec01	Mar02	Jun02	Sep02	Dec02	Mar03	Jun03	Sep03	Sep22	Sep23
Inventory Turnover	Get a 7-Day Free Trial															4.15	5.02	5.20	0.51	1.79

PharmChem Inventory Turnover Calculation

PharmChem's Inventory Turnover for the fiscal year that ended in Dec. 2002 is calculated as

	Inventory Turnover (A: Dec. 2002 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2002 )	/ (	(Total Inventories (A: Dec. 2001 )	+	Total Inventories (A: Dec. 2002 ))	/	count )
=	23.013	/ (	(2.16	+	1.318)	/	2 )
=	23.013	/	1.739
=	13.23

PharmChem'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: Sep. 2022 )	+	Total Inventories (Q: Sep. 2023 ))	/	count )
=	0.529	/ (	(0	+	0.295)	/	1 )
=	0.529	/	0.295
=	1.79

PharmChem (OTCPK:PCHM) 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.

PharmChem's Days Inventory for the three 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
	=	0.295	/	0.529	*	365 / 4
	=	50.89

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.

PharmChem'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 )
	=	0.295	/	1.564
	=	0.19

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.

PharmChem Inventory Turnover Related Terms

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PharmChem (PharmChem) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Diagnostics & Research » PharmChem Inc (OTCPK:PCHM) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

2411 E. Loop 820 N, Fort Worth, TX, USA, 76118

Website

https://www.pharmchek.com

PharmChem Inc is engaged in selling and distributing of the PharmChek Sweat Patch Device. PharmChek is a system that uses sweat to detect the presence of illegal drugs. It consists of a transparent polyurethane outer covering, a small absorbent pad, and a release liner. Geographically the activities are carried out throughout the United States.

Executives

Alto Investors Palo	10 percent owner	470 UNIVERSITY AVENUE, PALO ALTO CA 94301
Micro Cap Partners Lp	10 percent owner

PharmChem (PharmChem) Headlines

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