Cresco Labs (XCNQ:CL) Inventory Turnover : 0.82 (As of Dec. 2023)

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What is Cresco Labs 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. Cresco Labs's Cost of Goods Sold for the three months ended in Dec. 2023 was C$124 Mil. Cresco Labs's Average Total Inventories for the quarter that ended in Dec. 2023 was C$150 Mil. Cresco Labs's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.82.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Cresco Labs's Days Inventory for the three months ended in Dec. 2023 was 110.69.

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. Cresco Labs's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.59.

Cresco Labs Inventory Turnover Historical Data

The historical data trend for Cresco Labs'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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Cresco Labs Inventory Turnover Chart

Cresco Labs Annual Data

Trend

Jan14

Jan15

Jan16

Jan17

Jan18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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0.79

3.57

4.07

3.31

3.35

Cresco Labs Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															0.79	0.81	0.86	0.83	0.82

Cresco Labs Inventory Turnover Calculation

Cresco Labs'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 )
=	548.069	/ (	(182.865	+	144.61)	/	2 )
=	548.069	/	163.7375
=	3.35

Cresco Labs's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	123.55	/ (	(155.121	+	144.61)	/	2 )
=	123.55	/	149.8655
=	0.82

Cresco Labs (XCNQ:CL) 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.

Cresco Labs's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	149.8655	/	123.55	*	365 / 4
	=	110.69

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.

Cresco Labs's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	149.8655	/	252.539
	=	0.59

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.

Cresco Labs Inventory Turnover Related Terms

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Cresco Labs (XCNQ:CL) Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Cresco Labs Inc (XCNQ:CL) » Definitions » Inventory Turnover

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CRLBF:USA 6CQ:Germany

Address

400 W. Erie Street, Suite 110, Chicago, IL, USA, 60654

Website

https://www.crescolabs.com

Cresco Labs Inc is a vertically-integrated multi-state cannabis operator in the United States licensed to cultivate, manufacture and sell retail and medical cannabis products through Sunnyside, Cresco Labs' national dispensary brand and third-party retail stores. The Company operates in one segment, the cultivation, manufacturing, distribution and sale of cannabis.