Discovery Metals (ASX:DML) Inventory Turnover : 11.87 (As of Jun. 2014)

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What is Discovery Metals 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. Discovery Metals's Cost of Goods Sold for the six months ended in Jun. 2014 was A$170.5 Mil. Discovery Metals's Average Total Inventories for the quarter that ended in Jun. 2014 was A$14.4 Mil. Discovery Metals's Inventory Turnover for the quarter that ended in Jun. 2014 was 11.87.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Discovery Metals's Days Inventory for the six months ended in Jun. 2014 was 15.37.

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. Discovery Metals's Inventory-to-Revenue for the quarter that ended in Jun. 2014 was 0.11.

Discovery Metals Inventory Turnover Historical Data

The historical data trend for Discovery Metals'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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Discovery Metals Inventory Turnover Chart

Discovery Metals Annual Data

Trend

Jun05

Jun06

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

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Jun14

Inventory Turnover

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11.87

Discovery Metals Semi-Annual Data
	Jun04	Jun05	Jun06	Jun07	Jun08	Jun09	Jun10	Jun11	Jun12	Jun13	Jun14
Inventory Turnover	Get a 7-Day Free Trial						-	-	-	-	11.87

Discovery Metals Inventory Turnover Calculation

Discovery Metals's Inventory Turnover for the fiscal year that ended in Jun. 2014 is calculated as

	Inventory Turnover (A: Jun. 2014 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jun. 2014 )	/ (	(Total Inventories (A: Jun. 2013 )	+	Total Inventories (A: Jun. 2014 ))	/	count )
=	170.539	/ (	(15.904	+	12.828)	/	2 )
=	170.539	/	14.366
=	11.87

Discovery Metals's Inventory Turnover for the quarter that ended in Jun. 2014 is calculated as

	Inventory Turnover (Q: Jun. 2014 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jun. 2014 )	/ (	(Total Inventories (Q: Jun. 2013 )	+	Total Inventories (Q: Jun. 2014 ))	/	count )
=	170.539	/ (	(15.904	+	12.828)	/	2 )
=	170.539	/	14.366
=	11.87

Discovery Metals (ASX:DML) 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.

Discovery Metals's Days Inventory for the six months ended in Jun. 2014 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2014 )	/	Cost of Goods Sold (Q: Jun. 2014 )	*	Days in Period
	=	14.366	/	170.539	*	365 / 2
	=	15.37

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.

Discovery Metals's Inventory to Revenue for the quarter that ended in Jun. 2014 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2014 )	/	Revenue (Q: Jun. 2014 )
	=	14.366	/	127.601
	=	0.11

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.

Discovery Metals Inventory Turnover Related Terms

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Discovery Metals (ASX:DML) Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Discovery Metals Ltd (ASX:DML) » Definitions » Inventory Turnover

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http://www.discoverymetals.com

Discovery Metals Limited (DML) is incorporated in Australia. It is engaged in nickel and copper exploration company. The company focuses on the exploration and development on its two major projects in Botswana being the Maun Copper Project and the Dikoloti Nickel Project.

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