Hide

FocusBar

FeedbackFeedback
Subscribe to Premium Member
44.16 (1y: +20%)
Market Cap 1.06 B P/E(ttm) 11.70
Enterprise Value 953.2 M P/B 2.20
CALM- NAS (USA)
Cal-Maine Foods, Inc.
  • Currently 1/5
Business Predictability Rank: 1-Star (On Watch)
Back Testing Results:
Average gain of all 1-Star stocks: 1.1% per year.
% of Stocks that are in still loss if held for 10yrs: 45%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$44.16
Switch to:

Cal-Maine Foods, Inc. Inventory: 146.9 ( as of Feb13)

* All numbers are in millions except for per share data CALM 10-Y Financials »

Definition

Inventory includes the raw materials, work-in-process goods and completely finished goods of a company. It is a portion of a company’s current assets.

Explanation

Inventory control is an important part of business operation. If a company does not have enough inventory, it may not be able to meet customers’ required delivery time. If it has too much inventory, the cost of holding the inventory can be high.

In Ben Graham’s calculation of liquidation value, inventory is only considered worth half of its book value:

Liquidation Value = Cash and short-term investments + (0.75 * accounts receivable) + (0.5 * inventory) - total liabilities

Inventory can be measured by Days Sales of Inventory (DSI):

Days Sales of Inventory (DSI) = Inventory /Revenue * Days in Period.

Beaware

Manufacturers with durable competitive advantages have the advantage that the products they sell do not change, and therefore will never become obsolete. Buffett likes this advantage.

When identifying manufacturers with durable competitive advantage, look for inventory and net earnings that rise correspondingly. This indicates that the company is finding profitable ways to increase sales which called for an increase in inventory.

Manufacturers with inventories that spike up and down are indicative of competitive industries subject to boom and bust.

Related Terms

Total Current Assets
* All numbers are in millions except for per share data

Cal-Maine Foods, Inc. Annual Data

This information is for Premium Members Only.


Take the full advantage of Gurus' investment ideas now.

7-Day Free Trial
May03May04May05May06May07May08May09May10May11May12
InventoryPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member Only
Cal-Maine Foods, Inc. Quarterly Data

This information is for Premium Members Only.


Take the full advantage of Gurus' investment ideas now.

7-Day Free Trial
Nov10Feb11May11Aug11Nov11Feb12May12Aug12Nov12Feb13
InventoryPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member Only

Financial Dictionary

GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names
Free 7-day Trial
FEEDBACK