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ERF Wireless (ERF Wireless) Inventory Turnover : 3.80 (As of Sep. 2014)


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What is ERF Wireless 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. ERF Wireless's Cost of Goods Sold for the three months ended in Sep. 2014 was $1.01 Mil. ERF Wireless's Average Total Inventories for the quarter that ended in Sep. 2014 was $0.27 Mil. ERF Wireless's Inventory Turnover for the quarter that ended in Sep. 2014 was 3.80.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. ERF Wireless's Days Inventory for the three months ended in Sep. 2014 was 24.01.

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. ERF Wireless's Inventory-to-Revenue for the quarter that ended in Sep. 2014 was 0.19.

ERF Wireless Inventory Turnover Historical Data

The historical data trend for ERF Wireless'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.

* Premium members only.

ERF Wireless Inventory Turnover Chart

ERF Wireless Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.68 11.73 11.43 10.82 12.98

ERF Wireless Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
Inventory Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.13 3.73 3.61 3.65 3.80

ERF Wireless Inventory Turnover Calculation

ERF Wireless's Inventory Turnover for the fiscal year that ended in Dec. 2013 is calculated as

Inventory Turnover (A: Dec. 2013 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2013 ) / ((Total Inventories (A: Dec. 2012 ) + Total Inventories (A: Dec. 2013 )) / count )
=4.159 / ((0.377 + 0.264) / 2 )
=4.159 / 0.3205
=12.98

ERF Wireless's Inventory Turnover for the quarter that ended in Sep. 2014 is calculated as

Inventory Turnover (Q: Sep. 2014 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Sep. 2014 ) / ((Total Inventories (Q: Jun. 2014 ) + Total Inventories (Q: Sep. 2014 )) / count )
=1.009 / ((0.262 + 0.269) / 2 )
=1.009 / 0.2655
=3.80

* 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.

ERF Wireless  (OTCPK:ERFB) 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.

ERF Wireless's Days Inventory for the three months ended in Sep. 2014 is calculated as:

Days Inventory =Average Total Inventories (Q: Sep. 2014 )/Cost of Goods Sold (Q: Sep. 2014 )*Days in Period
=0.2655/1.009*365 / 4
=24.01

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.

ERF Wireless's Inventory to Revenue for the quarter that ended in Sep. 2014 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=0.2655 / 1.362
=0.19

* 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.

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.

ERF Wireless Inventory Turnover Related Terms

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ERF Wireless (ERF Wireless) Business Description

Industry
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Traded in Other Exchanges
N/A
Address
13500 Noel Road, Suite 436, Dallas, TX, USA, 75240
Website
http://www.erfwireless.com
ERF Wireless Inc provides critical infrastructure wireless broadband communications products and services to a broad spectrum of customers in primarily rural oil and gas exploration. It also provides high-quality broadband services and critical communications services to residential, oil and gas, educational, healthcare, and regional banks in rural areas utilizing. As a total comprehensive solutions provider, the group offers a wide array of critical communications services, including high-speed broadband, voice over Internet Protocol (VOIP) telephone and facsimile service, and video security. The business activities generally function in the areas of North America.