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Wright Medical Group (FRA:WM3) Inventory Turnover : 0.20 (As of Jun. 2015)


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What is Wright Medical Group 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. Wright Medical Group's Cost of Goods Sold for the three months ended in Jun. 2015 was €19.3 Mil. Wright Medical Group's Average Total Inventories for the quarter that ended in Jun. 2015 was €96.2 Mil. Wright Medical Group's Inventory Turnover for the quarter that ended in Jun. 2015 was 0.20.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Wright Medical Group's Days Inventory for the three months ended in Jun. 2015 was 455.15.

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. Wright Medical Group's Inventory-to-Revenue for the quarter that ended in Jun. 2015 was 1.34.

Wright Medical Group Inventory Turnover Historical Data

The historical data trend for Wright Medical Group'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.

* Premium members only.

Wright Medical Group Inventory Turnover Chart

Wright Medical Group Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.01 0.97 0.44 0.90 0.95

Wright Medical Group Quarterly Data
Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15
Inventory Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.25 0.21 0.22 0.21 0.20

Wright Medical Group Inventory Turnover Calculation

Wright Medical Group's Inventory Turnover for the fiscal year that ended in Dec. 2014 is calculated as

Inventory Turnover (A: Dec. 2014 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2014 ) / ((Total Inventories (A: Dec. 2013 ) + Total Inventories (A: Dec. 2014 )) / count )
=59.384 / ((52.883 + 71.702) / 2 )
=59.384 / 62.2925
=0.95

Wright Medical Group's Inventory Turnover for the quarter that ended in Jun. 2015 is calculated as

Inventory Turnover (Q: Jun. 2015 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Jun. 2015 ) / ((Total Inventories (Q: Mar. 2015 ) + Total Inventories (Q: Jun. 2015 )) / count )
=19.277 / ((94.133 + 98.174) / 2 )
=19.277 / 96.1535
=0.20

* 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.

Wright Medical Group  (FRA:WM3) 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.

Wright Medical Group's Days Inventory for the three months ended in Jun. 2015 is calculated as:

Days Inventory =Average Total Inventories (Q: Jun. 2015 )/Cost of Goods Sold (Q: Jun. 2015 )*Days in Period
=96.1535/19.277*365 / 4
=455.15

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.

Wright Medical Group's Inventory to Revenue for the quarter that ended in Jun. 2015 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 )
=96.1535 / 71.654
=1.34

* 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.

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.

Wright Medical Group Inventory Turnover Related Terms

Thank you for viewing the detailed overview of Wright Medical Group's Inventory Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.

Wright Medical Group (FRA:WM3) Business Description

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Address
Website
http://www.wmt.com
Wright Medical Group Inc, through Wright Medical Technology, Inc. and other operating subsidiaries, is a specialty orthopaedic company, that provides extremity and biologic solutions that enable clinicians to alleviate pain and restore their patients' lifestyles. The Company provides surgical solutions for the foot and ankle market and markets its products in over 60 countries. Its business includes products that are used in foot and ankle repair, upper extremity products, and biologics products, which are used to replace damaged or diseased bone, to stimulate bone growth and to provide other biological solutions for surgeons and their patients. Extremity hardware includes implants and other devices to replace or reconstruct injured or diseased joints and bones of the foot, ankle, hand, wrist, fingers, toes, elbow and shoulder, which it generally refer to as either foot and ankle or upper extremity products. The Company's manufacturing and warehousing operations are located in Arlington, Tennessee. Outside the U.S., The Company has distribution and administrative facilities in Amsterdam, the Netherlands, and sales and distribution offices in Canada, Australia, and Europe. The Company operates its continuing operations as one reportable segment and offer products in extremity reconstruction and biologics. The Company's products include CHARLOTTE, CLAW II, DARCO, EVOLVE, MICRONAIL, GRAFTJACKET, OSTEOSET. Its competitors include major companies in the orthopaedic and biologics industries, as well as academic institutions and other public and private research organizations that continue to conduct research, seek patent protection and establish arrangements for commercializing products. The Company's products are strictly regulated by the FDA under the Food, Drug, and Cosmetic Act. Some of its products are also regulated by state agencies.

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