Poseidon Concepts (TSX:PSN) Total Inventories : C$6.5 Mil (As of Sep. 2012)

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What is Poseidon Concepts Total Inventories?

Poseidon Concepts's total inventories for the quarter that ended in Sep. 2012 was C$6.5 Mil. Poseidon Concepts's average total inventories from the quarter that ended in Jun. 2012 to the quarter that ended in Sep. 2012 was C$6.5 Mil.

In Ben Graham's calculation of Net-Net Working Capital, inventory is only considered worth half of its book value. Poseidon Concepts's Net-Net Working Capital per share for the quarter that ended in Sep. 2012 was C$0.08.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Poseidon Concepts's Days Inventory for the three months ended in Sep. 2012 was 65.08.

Inventory Turnover measures how fast the company turns over its inventory within a year. Poseidon Concepts's Inventory Turnover for the quarter that ended in Sep. 2012 was 1.40.

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. Poseidon Concepts's Inventory-to-Revenue for the quarter that ended in Sep. 2012 was 0.16.

Poseidon Concepts Total Inventories Historical Data

The historical data trend for Poseidon Concepts's Total Inventories 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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Poseidon Concepts Total Inventories Chart

Poseidon Concepts Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Total Inventories

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0.09

2.86

Poseidon Concepts Quarterly Data
	Dec06	Dec07	Dec08	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12
Total Inventories	Get a 7-Day Free Trial										-	2.86	4.11	6.43	6.51

Poseidon Concepts Total Inventories Calculation

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.

Poseidon Concepts (TSX:PSN) Total Inventories 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 Net-Net Working Capital (NNWC), inventory is only considered worth half of its book value.

Poseidon Concepts's Net-Net Working Capital Per Share for the quarter that ended in Sep. 2012 is

	Net-Net Working Capital Per Share (Q: Sep. 2012 )
=	(Cash And Cash Equivalents	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(3.461	+	0.75 * 125.516	+	0.5 * 6.507	-	94.286
-	0	-	0)	/	81.097
=	0.08

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

Poseidon Concepts's Days Inventory for the three months ended in Sep. 2012 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2012 )	/	Cost of Goods Sold (Q: Sep. 2012 )	*	Days in Period
	=	6.4685	/	9.069	*	365 / 4
	=	65.08

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

Poseidon Concepts's Inventory Turnover for the quarter that ended in Sep. 2012 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Sep. 2012 )	/	Average Total Inventories (Q: Sep. 2012 )
	=	9.069	/	6.4685
	=	1.40

4. 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.

Poseidon Concepts's Inventory to Revenue for the quarter that ended in Sep. 2012 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2012 )	/	Revenue (Q: Sep. 2012 )
	=	6.4685	/	41.116
	=	0.16

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.

Poseidon Concepts Total Inventories Related Terms

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