Headwaters (Headwaters) Inventory Turnover : 2.21 (As of Mar. 2017)

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What is Headwaters 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. Headwaters's Cost of Goods Sold for the three months ended in Mar. 2017 was $189 Mil. Headwaters's Average Total Inventories for the quarter that ended in Mar. 2017 was $85 Mil. Headwaters's Inventory Turnover for the quarter that ended in Mar. 2017 was 2.21.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Headwaters's Days Inventory for the three months ended in Mar. 2017 was 41.20.

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. Headwaters's Inventory-to-Revenue for the quarter that ended in Mar. 2017 was 0.33.

Headwaters Inventory Turnover Historical Data

The historical data trend for Headwaters'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.

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Headwaters Inventory Turnover Chart

Headwaters Annual Data

Trend

Sep07

Sep08

Sep09

Sep10

Sep11

Sep12

Sep13

Sep14

Sep15

Sep16

Inventory Turnover

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14.12

14.79

12.86

11.83

10.75

Headwaters Quarterly Data
	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17
Inventory Turnover	Get a 7-Day Free Trial															2.31	2.72	2.98	2.42	2.21

Headwaters Inventory Turnover Calculation

Headwaters's Inventory Turnover for the fiscal year that ended in Sep. 2016 is calculated as

	Inventory Turnover (A: Sep. 2016 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Sep. 2016 )	/ (	(Total Inventories (A: Sep. 2015 )	+	Total Inventories (A: Sep. 2016 ))	/	count )
=	686.606	/ (	(55.074	+	72.668)	/	2 )
=	686.606	/	63.871
=	10.75

Headwaters's Inventory Turnover for the quarter that ended in Mar. 2017 is calculated as

	Inventory Turnover (Q: Mar. 2017 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2017 )	/ (	(Total Inventories (Q: Dec. 2016 )	+	Total Inventories (Q: Mar. 2017 ))	/	count )
=	188.786	/ (	(80.466	+	89.997)	/	2 )
=	188.786	/	85.2315
=	2.21

Headwaters (NYSE:HW) 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.

Headwaters's Days Inventory for the three months ended in Mar. 2017 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2017 )	/	Cost of Goods Sold (Q: Mar. 2017 )	*	Days in Period
	=	85.2315	/	188.786	*	365 / 4
	=	41.20

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.

Headwaters's Inventory to Revenue for the quarter that ended in Mar. 2017 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2017 )	/	Revenue (Q: Mar. 2017 )
	=	85.2315	/	259.293
	=	0.33

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.

Headwaters Inventory Turnover Related Terms

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Headwaters (Headwaters) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Headwaters Inc (NYSE:HW) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.headwaters.com

Headwaters is a manufacturer of building products for the residential construction, residential remodelling, commercial, and industrial construction industries. The range of products includes architectural stone, resin-based exterior-siding accessories, roofing, trim board, decking, railing, concrete block and brick, windows, and other building products. Headwaters sells its products to wholesale distributors in the United States or big-box stores, as well as through an in-house direct salesforce.

Executives

Donald P Newman	officer: Chief Financial Officer	224 S 108TH AVENUE, OMAHA NE 68154
Sylvia Summers	director	200 FLYNN ROAD, CAMARILLO CA 93012
Malyn K Malquist	director	10653 S. RIVER FRONT PARKWAY, SUITE 300, SOUTH JORDAN UT 84095
Ej Jake Garn	director	10653 SOUTH RIVER FRONT PARKWAY, SUITE 300, SOUTH JORDAN UT 84095
Scott K Sorensen	officer: Chief Financial Officer	10653 S. RIVER FRONT PARKWAY, SUITE 300, SOUTH JORDAN UT 84095