Ergo Science (Ergo Science) Inventory Turnover : 11.27 (As of Sep. 2006)

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What is Ergo Science 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. Ergo Science's Cost of Goods Sold for the three months ended in Sep. 2006 was $6.53 Mil. Ergo Science's Average Total Inventories for the quarter that ended in Sep. 2006 was $0.58 Mil. Ergo Science's Inventory Turnover for the quarter that ended in Sep. 2006 was 11.27.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Ergo Science's Days Inventory for the three months ended in Sep. 2006 was 8.10.

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. Ergo Science's Inventory-to-Revenue for the quarter that ended in Sep. 2006 was 0.06.

Ergo Science Inventory Turnover Historical Data

The historical data trend for Ergo Science'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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Ergo Science Inventory Turnover Chart

Ergo Science Annual Data

Trend

Dec96

Dec97

Dec98

Dec99

Dec00

Dec01

Dec02

Dec03

Dec04

Dec05

Inventory Turnover

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50.34

45.33

Ergo Science Quarterly Data
	Dec01	Mar02	Jun02	Sep02	Dec02	Mar03	Jun03	Sep03	Dec03	Mar04	Jun04	Sep04	Dec04	Mar05	Jun05	Sep05	Dec05	Mar06	Jun06	Sep06
Inventory Turnover	Get a 7-Day Free Trial															14.44	-	17.57	13.88	11.27

Ergo Science Inventory Turnover Calculation

Ergo Science's Inventory Turnover for the fiscal year that ended in Dec. 2005 is calculated as

	Inventory Turnover (A: Dec. 2005 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2005 )	/ (	(Total Inventories (A: Dec. 2004 )	+	Total Inventories (A: Dec. 2005 ))	/	count )
=	18.765	/ (	(0.555	+	0.273)	/	2 )
=	18.765	/	0.414
=	45.33

Ergo Science's Inventory Turnover for the quarter that ended in Sep. 2006 is calculated as

	Inventory Turnover (Q: Sep. 2006 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2006 )	/ (	(Total Inventories (Q: Jun. 2006 )	+	Total Inventories (Q: Sep. 2006 ))	/	count )
=	6.53	/ (	(0.593	+	0.566)	/	2 )
=	6.53	/	0.5795
=	11.27

Ergo Science (GREY:ERGN) 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.

Ergo Science's Days Inventory for the three months ended in Sep. 2006 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2006 )	/	Cost of Goods Sold (Q: Sep. 2006 )	*	Days in Period
	=	0.5795	/	6.53	*	365 / 4
	=	8.10

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.

Ergo Science's Inventory to Revenue for the quarter that ended in Sep. 2006 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2006 )	/	Revenue (Q: Sep. 2006 )
	=	0.5795	/	9.311
	=	0.06

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.

Ergo Science Inventory Turnover Related Terms

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Ergo Science (Ergo Science) Business Description

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Address

402 Office Park Drive, Suite 260, Birmingham, AL, USA, 35223

Website

http://www.ergoscience.com

Ergo Science Corp is a United States based workforce injury prevention and treatment provider. It is focused on employee safety and employer risk reduction. The company offers physical abilities tests built from defensible, peer-reviewed research; evidence-based injury prevention and rehabilitation for diversified businesses.

Executives

Citigroup Inc	director	388 GREENWICH STREET, NEW YORK NY 10013
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Citicorp Banking Corp	director	ONE PENNS WAY, NEW CASTLE DE 19720
Citigroup Holdings Co	director	336 THE STRAND, LONDON ENGLAND
Court Square Capital Ltd	director	399 PARK AVE, NEW YORK NY 10043

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