WG Wearne (JSE:WEA) Days Inventory : 21.11 (As of Aug. 2017)

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What is WG Wearne Days Inventory?

Days Inventory is also known as Days Sales of Inventory (DSI). WG Wearne's Average Total Inventories for the six months ended in Aug. 2017 was R18.4 Mil. WG Wearne's Cost of Goods Sold for the six months ended in Aug. 2017 was R159.0 Mil. Hence, WG Wearne's Days Inventory for the six months ended in Aug. 2017 was 21.11.

The historical rank and industry rank for WG Wearne's Days Inventory or its related term are showing as below:

JSE:WEA's Days Inventory is not ranked ^*
in the Building Materials industry.
Industry Median: 84.13
* Ranked among companies with meaningful Days Inventory only.

WG Wearne's Days Inventory declined from Aug. 2016 (29.08) to Aug. 2017 (21.11).

Inventory Turnover measures how fast the company turns over its inventory within a year. WG Wearne's Inventory Turnover for the six months ended in Aug. 2017 was 8.65.

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. WG Wearne's Inventory-to-Revenue for the six months ended in Aug. 2017 was 0.09.

WG Wearne Days Inventory Historical Data

The historical data trend for WG Wearne's Days Inventory 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.

WG Wearne Days Inventory Chart

WG Wearne Annual Data

Trend

Feb08

Feb09

Feb10

Feb11

Feb12

Feb13

Feb14

Feb15

Feb16

Feb17

Days Inventory

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21.49

22.96

30.37

29.24

23.94

WG Wearne Semi-Annual Data
	Feb08	Aug08	Feb09	Aug09	Feb10	Aug10	Feb11	Aug11	Feb12	Aug12	Feb13	Aug13	Feb14	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17
Days Inventory	Get a 7-Day Free Trial															31.47	32.11	29.08	17.30	21.11

Competitive Comparison of WG Wearne's Days Inventory

For the Building Materials subindustry, WG Wearne's Days Inventory, along with its competitors' market caps and Days Inventory data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

WG Wearne's Days Inventory Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, WG Wearne's Days Inventory distribution charts can be found below:

* The bar in red indicates where WG Wearne's Days Inventory falls into.

WG Wearne Days Inventory Calculation

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

WG Wearne's Days Inventory for the fiscal year that ended in Feb. 2017 is calculated as

	Days Inventory (A: Feb. 2017 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (A: Feb. 2016 )	+	Total Inventories (A: Feb. 2017 ))	/	count )	/	Cost of Goods Sold (A: Feb. 2017 )	*	Days in Period
=	( (27.642	+	17.967)	/	2 )	/	347.633	*	365
=	22.8045					/	347.633	*	365
=	23.94

WG Wearne's Days Inventory for the quarter that ended in Aug. 2017 is calculated as:

	Days Inventory (Q: Aug. 2017 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (Q: Feb. 2017 )	+	Total Inventories (Q: Aug. 2017 ))	/	count )	/	Cost of Goods Sold (Q: Aug. 2017 )	*	Days in Period
=	( (17.967	+	18.811)	/	2 )	/	158.999	*	365 / 2
=	18.389					/	158.999	*	365 / 2
=	21.11

WG Wearne (JSE:WEA) Days Inventory Explanation

Days Inventory indicates the liquidity of the inventory. Generally, a lower Days Inventory is preferred as it indicates a shorter duration to clear off the inventory. An increase of the ratio may indicate the company's sales slowed. Similar ratios related to Days Inventory are:

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

WG Wearne's Inventory Turnover for the six months ended in Aug. 2017 is calculated as

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	158.999	/	18.389
	=	8.65

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.

WG Wearne's Inventory to Revenue for the six months ended in Aug. 2017 is calculated as

Inventory-to-Revenue	=	Average Total Inventories	/	Revenue
	=	18.389	/	213.226
	=	0.09

Be Aware

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.

WG Wearne Days Inventory Related Terms

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WG Wearne (JSE:WEA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » WG Wearne Ltd (JSE:WEA) » Definitions » Days Inventory

Comparable Companies

Traded in Other Exchanges

N/A

Address

300 Acacia Road, Stonemill Office Park, P.O Box 1674, 3 Kiepersol House, Cresta, ZAF, 2118

Website

http://www.wearne.co.za

WG Wearne Ltd is a supplier of materials and contracting services to the building and construction industry with a complete building material solution. The company is involved in various big construction projects such as the construction of Rand Afrikaans University, the Western Bypass, the Lesotho Highlands Water Scheme, Soccer City and FNB in Fairlands Johannesburg. It operates across South Africa with concentrated operations in Limpopo and Gauteng provinces. its products include sub base materials, concrete stone, road stone, dump rock, ballast stone, crusher sand, building sand, builders mix, plaster sand, generic concrete range, Wearne specialty concrete, high-performance concrete, base course materials and sub base materials.