Eltek ASA (OSL:ELT) Inventory Turnover : 1.25 (As of Dec. 2014)

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What is Eltek ASA 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. Eltek ASA's Cost of Goods Sold for the three months ended in Dec. 2014 was kr746 Mil. Eltek ASA's Average Total Inventories for the quarter that ended in Dec. 2014 was kr598 Mil. Eltek ASA's Inventory Turnover for the quarter that ended in Dec. 2014 was 1.25.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Eltek ASA's Days Inventory for the three months ended in Dec. 2014 was 73.16.

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. Eltek ASA's Inventory-to-Revenue for the quarter that ended in Dec. 2014 was 0.56.

Eltek ASA Inventory Turnover Historical Data

The historical data trend for Eltek ASA'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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Eltek ASA Inventory Turnover Chart

Eltek ASA Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Inventory Turnover

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4.12

4.81

4.55

5.06

4.90

Eltek ASA Quarterly Data
	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14
Inventory Turnover	Get a 7-Day Free Trial															1.26	1.05	1.25	1.16	1.25

Eltek ASA Inventory Turnover Calculation

Eltek ASA'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 )
=	2725.4	/ (	(521.2	+	592.1)	/	2 )
=	2725.4	/	556.65
=	4.90

Eltek ASA's Inventory Turnover for the quarter that ended in Dec. 2014 is calculated as

	Inventory Turnover (Q: Dec. 2014 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2014 )	/ (	(Total Inventories (Q: Sep. 2014 )	+	Total Inventories (Q: Dec. 2014 ))	/	count )
=	746.1	/ (	(604.2	+	592.1)	/	2 )
=	746.1	/	598.15
=	1.25

Eltek ASA (OSL:ELT) 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.

Eltek ASA's Days Inventory for the three months ended in Dec. 2014 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2014 )	/	Cost of Goods Sold (Q: Dec. 2014 )	*	Days in Period
	=	598.15	/	746.1	*	365 / 4
	=	73.16

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.

Eltek ASA's Inventory to Revenue for the quarter that ended in Dec. 2014 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2014 )	/	Revenue (Q: Dec. 2014 )
	=	598.15	/	1067.9
	=	0.56

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.

Eltek ASA Inventory Turnover Related Terms

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Eltek ASA (OSL:ELT) Business Description

Industry

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Address

Website

http://www.eltek.com

Eltek Power Systems AS was incorporated on January 1, 1971. The Company is a supplier to the telecommunication industry. The Company develops, manufactures & markets power systems & solutions for mission critical applications within telecommunications & data centers, and for the power utilities, railway & metro, & marine & offshore industries.

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