Switch to:
UNS Energy Corp (NYSE:UNS)
Total Inventories
\$137 Mil (As of Jun. 2014)

UNS Energy Corp's total inventories for the quarter that ended in Jun. 2014 was \$137 Mil. UNS Energy Corp's average total inventories from the quarter that ended in Mar. 2014 to the quarter that ended in Jun. 2014 was \$136 Mil.

In Ben Grahams calculation of liquidation value, inventory is only considered worth half of its book value. UNS Energy Corp's liquidation value for the quarter that ended in Jun. 2014 was \$-3,180 Mil.

Inventory can be measured by days sales of inventory (DSI). UNS Energy Corp's days sales of inventory (DSI) for the three months ended in Jun. 2014 was 32.13.

Days inventory indicates the number of days of goods in sales that a company has in the inventory. UNS Energy Corp's days inventory for the three months ended in Jun. 2014 was 84.45.

Inventory turnover measures how fast the company turns over its inventory within a year. UNS Energy Corp's inventory turnover for the quarter that ended in Jun. 2014 was 1.08.

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. UNS Energy Corp's inventory to revenue ratio for the quarter that ended in Jun. 2014 was 0.35.

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.

UNS Energy Corp's liquidation value for the quarter that ended in Jun. 2014 is

 Liquidation value (Q: Jun. 2014 ) = Cash and Cash Equivalents - Total Liabilities + (0.75 * Account Receivable) + (0.5 * Inventory) = 69.68 - 3399.014 + 0.75 * 107.275 + 0.5 * 136.815 = -3,180

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

UNS Energy Corp's Days Sales of Inventory for the three months ended in Jun. 2014 is

 Days Sales of Inventory (DSI) = Average Inventory (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 ) * Days in Period = 136.137 / 386.606 * 365 / 4 = 32.13

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

UNS Energy Corp's Days Inventory for the three months ended in Jun. 2014 is calculated as:

 Days Inventory = Average Inventory (Q: Jun. 2014 ) / Cost of Goods Sold (Q: Jun. 2014 ) * Days in Period = 136.137 / 147.103 * 365 / 4 = 84.45

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

UNS Energy Corp's Inventory Turnover for the quarter that ended in Jun. 2014 is calculated as

 Inventory Turnover = Cost of Goods Sold (Q: Jun. 2014 ) / Average Inventory (Q: Jun. 2014 ) = 147.103 / 136.137 = 1.08

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.

UNS Energy Corp's Inventory to Revenue for the quarter that ended in Jun. 2014 is calculated as

 Inventory to Revenue = Average Inventory (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 ) = 136.137 / 386.606 = 0.35

* 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

Historical Data

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

UNS Energy Corp Annual Data

 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Inventory 62 70 74 82 92 117 95 116 155 132

UNS Energy Corp Quarterly Data

 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Inventory 129 138 149 155 154 160 134 132 135 137
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)