Dragon Oil (LSE:DGO) Inventory Turnover : 7.89 (As of Jun. 2015)

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What is Dragon Oil 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. Dragon Oil's Cost of Goods Sold for the six months ended in Jun. 2015 was £155.6 Mil. Dragon Oil's Average Total Inventories for the quarter that ended in Jun. 2015 was £19.7 Mil. Dragon Oil's Inventory Turnover for the quarter that ended in Jun. 2015 was 7.89.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Dragon Oil's Days Inventory for the six months ended in Jun. 2015 was 23.13.

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. Dragon Oil's Inventory-to-Revenue for the quarter that ended in Jun. 2015 was 0.07.

Dragon Oil Inventory Turnover Historical Data

The historical data trend for Dragon Oil'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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Dragon Oil Inventory Turnover Chart

Dragon Oil Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Inventory Turnover

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5.97

9.88

33.53

17.51

12.14

Dragon Oil Semi-Annual Data
	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15
Inventory Turnover	Get a 7-Day Free Trial								12.00	8.91	4.66	7.87	7.89

Dragon Oil Inventory Turnover Calculation

Dragon Oil'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 )
=	227.878	/ (	(14.914	+	22.642)	/	2 )
=	227.878	/	18.778
=	12.14

Dragon Oil'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: Dec. 2014 )	+	Total Inventories (Q: Jun. 2015 ))	/	count )
=	155.637	/ (	(22.642	+	16.81)	/	2 )
=	155.637	/	19.726
=	7.89

Dragon Oil (LSE:DGO) 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.

Dragon Oil's Days Inventory for the six 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
	=	19.726	/	155.637	*	365 / 2
	=	23.13

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.

Dragon Oil'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 )
	=	19.726	/	288.817
	=	0.07

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.

Dragon Oil Inventory Turnover Related Terms

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Dragon Oil (LSE:DGO) Business Description

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http://www.dragonoil.com

Dragon Oil PLC is an independent oil and gas exploration, development and production company. The Company's producing asset is the Cheleken Contract Area, in the eastern section of the Caspian Sea, offshore Turkmenistan. It has exploration blocks offshore Tunisia (the Bargou Exploration Permit), in Iraq (Block 9), Afghanistan (Sanduqli and Mazar-i-Sharif blocks), offshore the Philippines (Service Contract 63) in partnership with other companies and Block 19 in Egypt. The Company develops the hydrocarbon reserves in the Cheleken Contract Area in accordance with the terms of the Production Sharing Agreement (PSA). As at 31 December 2014 the Company had probably oil reserves of 663 million barrels of oil and condensate, gas 2P reserves and contingent gas resources of c. 2.7 TCF. The Bargou Exploration Permit contains prospective resources, while Block 9, Sanduqli and Mazar-i-Sharif blocks and Block 19 are at an early stage of exploration. The Company is subject to the international laws and regulations that it operates in.

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