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China Food Co (LSE:CFC) Inventory Turnover : 0.77 (As of Jun. 2013)


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What is China Food Co 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. China Food Co's Cost of Goods Sold for the six months ended in Jun. 2013 was £4.78 Mil. China Food Co's Average Total Inventories for the quarter that ended in Jun. 2013 was £6.20 Mil. China Food Co's Inventory Turnover for the quarter that ended in Jun. 2013 was 0.77.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. China Food Co's Days Inventory for the six months ended in Jun. 2013 was 236.53.

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. China Food Co's Inventory-to-Revenue for the quarter that ended in Jun. 2013 was 0.98.

China Food Co Inventory Turnover Historical Data

The historical data trend for China Food Co'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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China Food Co Inventory Turnover Chart

China Food Co Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11
Inventory Turnover
Get a 7-Day Free Trial 37.86 28.99 17.95 12.95 6.87

China Food Co Semi-Annual Data
Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13
Inventory Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 1.30 5.00 1.27 1.28 0.77

China Food Co Inventory Turnover Calculation

China Food Co's Inventory Turnover for the fiscal year that ended in Dec. 2011 is calculated as

Inventory Turnover (A: Dec. 2011 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2011 ) / ((Total Inventories (A: Dec. 2010 ) + Total Inventories (A: Dec. 2011 )) / count )
=31.655 / ((3.002 + 6.208) / 2 )
=31.655 / 4.605
=6.87

China Food Co's Inventory Turnover for the quarter that ended in Jun. 2013 is calculated as

Inventory Turnover (Q: Jun. 2013 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Jun. 2013 ) / ((Total Inventories (Q: Dec. 2012 ) + Total Inventories (Q: Jun. 2013 )) / count )
=4.781 / ((5.831 + 6.562) / 2 )
=4.781 / 6.1965
=0.77

* 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.

China Food Co  (LSE:CFC) 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.

China Food Co's Days Inventory for the six months ended in Jun. 2013 is calculated as:

Days Inventory =Average Total Inventories (Q: Jun. 2013 )/Cost of Goods Sold (Q: Jun. 2013 )*Days in Period
=6.1965/4.781*365 / 2
=236.53

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.

China Food Co's Inventory to Revenue for the quarter that ended in Jun. 2013 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Jun. 2013 ) / Revenue (Q: Jun. 2013 )
=6.1965 / 6.332
=0.98

* 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.

China Food Co Inventory Turnover Related Terms

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China Food Co (LSE:CFC) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » China Food Co PLC (LSE:CFC) » Definitions » Inventory Turnover
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Traded in Other Exchanges
N/A
Address
Website
http://www.chinafoodcompany.com
China Food Company PLC is incorporated in England and Wales. It produces and distributes cooking and dipping sauces, soya sauce and vinegar/bean paste through its subsidiaries in the People's Republic of China.

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