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Zoltek Companies, Inc. (NAS:ZOLT)
Inventory Turnover
0.42 (As of Dec. 2013)

Inventory turnover measures how fast the company turns over its inventory within a year. It is calculated as cost of goods sold divided by average inventory. Zoltek Companies, Inc.'s cost of goods sold for the three months ended in Dec. 2013 was \$29.8 Mil. Zoltek Companies, Inc.'s average inventory for the quarter that ended in Dec. 2013 was \$71.5 Mil. Zoltek Companies, Inc.'s inventory turnover for the quarter that ended in Dec. 2013 was 0.42.

Days inventory indicates the number of days of goods in sales that a company has in the inventory. Zoltek Companies, Inc.'s days inventory for the three months ended in Dec. 2013 was 218.55.

Inventory can be measured by Days Sales of Inventory (DSI). Zoltek Companies, Inc.'s days sales of inventory (DSI) for the three months ended in Dec. 2013 was 185.69.

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. Zoltek Companies, Inc.'s inventory to revenue ratio for the quarter that ended in Dec. 2013 was 2.03.

Definition

Zoltek Companies, Inc.'s Inventory Turnover for the fiscal year that ended in Sep. 2013 is calculated as

 Inventory Turnover (A: Sep. 2013 ) = Cost of Goods Sold / Average Inventory = Cost of Goods Sold (A: Sep. 2013 ) / ( (Inventory (A: Sep. 2012 ) + Inventory (A: Sep. 2013 )) / 2 ) = 110.621 / ( (67.942 + 71.945) / 2 ) = 110.621 / 69.9435 = 1.58

Zoltek Companies, Inc.'s Inventory Turnover for the quarter that ended in Dec. 2013 is calculated as

 Inventory Turnover (Q: Dec. 2013 ) = Cost of Goods Sold / Average Inventory = Cost of Goods Sold (Q: Dec. 2013 ) / ( (Inventory (Q: Sep. 2013 ) + Inventory (Q: Dec. 2013 )) / 2 ) = 29.842 / ( (71.945 + 71.005) / 2 ) = 29.842 / 71.475 = 0.42

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

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.

Zoltek Companies, Inc.'s Days Inventory for the three months ended in Dec. 2013 is calculated as:

 Days Inventory = Average Inventory (Q: Dec. 2013 ) / Cost of Goods Sold (Q: Dec. 2013 ) * Days in Period = 71.475 / 29.842 * 365 / 4 = 218.55

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

Zoltek Companies, Inc.'s Days Sales of Inventory for the three months ended in Dec. 2013 is calculated as:

 Days Sales of Inventory (DSI) = Average Inventory (Q: Dec. 2013 ) / Revenue (Q: Dec. 2013 ) * Days in Period = 71.475 / 35.123 * 365 / 4 = 185.69

3. 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.

Zoltek Companies, Inc.'s Inventory to Revenue for the quarter that ended in Dec. 2013 is calculated as

 Inventory to Revenue = Average Inventory (Q: Dec. 2013 ) / Revenue (Q: Dec. 2013 ) = 71.475 / 35.123 = 2.03

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

Related Terms

Historical Data

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

Zoltek Companies, Inc. Annual Data

 Sep04 Sep05 Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Inventory Turnover 1.10 2.09 3.01 4.33 3.65 2.31 2.68 3.12 2.43 1.58

Zoltek Companies, Inc. Quarterly Data

 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Inventory Turnover 0.75 0.67 0.64 0.60 0.52 0.36 0.33 0.30 0.44 0.42
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