Switch to:
Sensient Technologies Corp (NYSE:SXT)
Total Inventories
$428 Mil (As of Jun. 2015)

Sensient Technologies Corp's total inventories for the quarter that ended in Jun. 2015 was $428 Mil. Sensient Technologies Corp's average total inventories from the quarter that ended in Mar. 2015 to the quarter that ended in Jun. 2015 was $419 Mil.

In Ben Graham’s calculation of liquidation value, inventory is only considered worth half of its book value. Sensient Technologies Corp's liquidation value for the quarter that ended in Jun. 2015 was $-395 Mil.

Inventory can be measured by days sales of inventory (DSI). Sensient Technologies Corp's days sales of inventory (DSI) for the three months ended in Jun. 2015 was 110.60.

Days inventory indicates the number of days of goods in sales that a company has in the inventory. Sensient Technologies Corp's days inventory for the three months ended in Jun. 2015 was 167.96.

Inventory turnover measures how fast the company turns over its inventory within a year. Sensient Technologies Corp's inventory turnover for the quarter that ended in Jun. 2015 was 0.54.

Inventory to revenue ratio 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. Sensient Technologies Corp's inventory to revenue ratio for the quarter that ended in Jun. 2015 was 1.21.


Definition

Total Inventories 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.

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

Sensient Technologies Corp's liquidation value for the quarter that ended in Jun. 2015 is

Liquidation value (Q: Jun. 2015 )
=Cash and Cash Equivalents-Total Liabilities+(0.75 * Account Receivable)+(0.5 * Inventory)
=21.785-817.398+0.75 * 248.11+0.5 * 428.444
=-395

2. Inventory can be measured by Days Sales of Inventory (DSI).

Sensient Technologies Corp's Days Sales of Inventory for the three months ended in Jun. 2015 is

Days Sales of Inventory (DSI)
=Average Inventory (Q: Jun. 2015 )/Revenue (Q: Jun. 2015 )*Days in Period
=419.395/346.009*365 / 4
=110.60

3. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Sensient Technologies Corp's Days Inventory for the three months ended in Jun. 2015 is calculated as:

Days Inventory=Average Inventory (Q: Jun. 2015 )/Cost of Goods Sold (Q: Jun. 2015 )*Days in Period
=419.395/227.854*365 / 4
=167.96

4. Inventory Turnover measures how fast the company turns over its inventory within a year.

Sensient Technologies Corp's Inventory Turnover for the quarter that ended in Jun. 2015 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Jun. 2015 ) / Average Inventory (Q: Jun. 2015 )
=227.854 / 419.395
=0.54

5. 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.

Sensient Technologies Corp's Inventory to Revenue for the quarter that ended in Jun. 2015 is calculated as

Inventory to Revenue=Average Inventory (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 )
=419.395 / 346.009
=1.21

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Be Aware

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

Revenue, Cash and Cash Equivalents, Total Liabilities, Account Receivable, Inventory, NCAV, Days Inventory, Cost of Goods Sold, Inventory Turnover, Inventory to Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Sensient Technologies Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Inventory 314333362381390392414443474449

Sensient Technologies Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Inventory 425427449474467479475449410428
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK