American Railcar Industries (American Railcar Industries) Inventory Turnover : 0.98 (As of Sep. 2018)

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What is American Railcar Industries 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. American Railcar Industries's Cost of Goods Sold for the three months ended in Sep. 2018 was $77.5 Mil. American Railcar Industries's Average Total Inventories for the quarter that ended in Sep. 2018 was $78.8 Mil. American Railcar Industries's Inventory Turnover for the quarter that ended in Sep. 2018 was 0.98.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. American Railcar Industries's Days Inventory for the three months ended in Sep. 2018 was 92.78.

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. American Railcar Industries's Inventory-to-Revenue for the quarter that ended in Sep. 2018 was 0.79.

American Railcar Industries Inventory Turnover Historical Data

The historical data trend for American Railcar Industries'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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American Railcar Industries Inventory Turnover Chart

American Railcar Industries Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Inventory Turnover

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5.71

5.15

5.91

5.55

5.56

American Railcar Industries Quarterly Data
	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18
Inventory Turnover	Get a 7-Day Free Trial															1.28	1.66	1.36	1.53	0.98

American Railcar Industries Inventory Turnover Calculation

American Railcar Industries's Inventory Turnover for the fiscal year that ended in Dec. 2017 is calculated as

	Inventory Turnover (A: Dec. 2017 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2017 )	/ (	(Total Inventories (A: Dec. 2016 )	+	Total Inventories (A: Dec. 2017 ))	/	count )
=	359.354	/ (	(75.028	+	54.147)	/	2 )
=	359.354	/	64.5875
=	5.56

American Railcar Industries's Inventory Turnover for the quarter that ended in Sep. 2018 is calculated as

	Inventory Turnover (Q: Sep. 2018 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2018 )	/ (	(Total Inventories (Q: Jun. 2018 )	+	Total Inventories (Q: Sep. 2018 ))	/	count )
=	77.515	/ (	(77.972	+	79.655)	/	2 )
=	77.515	/	78.8135
=	0.98

American Railcar Industries (NAS:ARII) 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.

American Railcar Industries's Days Inventory for the three months ended in Sep. 2018 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2018 )	/	Cost of Goods Sold (Q: Sep. 2018 )	*	Days in Period
	=	78.8135	/	77.515	*	365 / 4
	=	92.78

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.

American Railcar Industries's Inventory to Revenue for the quarter that ended in Sep. 2018 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2018 )	/	Revenue (Q: Sep. 2018 )
	=	78.8135	/	99.984
	=	0.79

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.

American Railcar Industries Inventory Turnover Related Terms

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American Railcar Industries (American Railcar Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » American Railcar Industries Inc (NAS:ARII) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.americanrailcar.com

American Railcar Industries Inc designs, manufactures and sells special, customized and general-purpose railcars and components for the North American railcar and industrial markets. Its segments are manufacturing, railcar leasing and railcar services.

Executives

Carl C Icahn	10 percent owner	C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH-1, SUNNY ISLES BEACH FL 33160
Harold First	director	13 55 WILKINS CT, FAIRLAWN NJ 07410
Icahn Enterprises G.p. Inc.	10 percent owner	16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Beckton Corp	10 percent owner	16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Icahn Enterprises Holdings L.p.	10 percent owner	16690 COLLINS AVE,, PH, SUNNY ISLES FL 33160
Patricia A. Agnello	director	C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Jonathan Frates	director	C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Mather Courtney	director	C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Andrew Roberto	director	C/O ICAHN ENTERPRISES L.P., 767 FIFTH AVENUE, SUITE 4700, NEW YORK NY 10153
Daniel A Ninivaggi	director	C/O ICAHN ENTERPRISES L.P., 767 FIFTH AVENUE, SUITE 4600, NEW YORK NY 10153
Samuel J. Merksamer	director	C/O ICAHN CAPITAL LP, 767 FIFTH AVENUE, 47TH FLOOR, NEW YORK NY 10153
Sunghwan Cho	director	C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Vincent J Intrieri	director	C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Stephen A Mongillo	director	C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Hunter Clark Gary	director	C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160