WG Wearne (JSE:WEA) Total Inventories : R18.8 Mil (As of Aug. 2017)

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What is WG Wearne Total Inventories?

WG Wearne's total inventories for the quarter that ended in Aug. 2017 was R18.8 Mil. WG Wearne's average total inventories from the quarter that ended in Feb. 2017 to the quarter that ended in Aug. 2017 was R18.4 Mil.

In Ben Graham's calculation of Net-Net Working Capital, inventory is only considered worth half of its book value. WG Wearne's Net-Net Working Capital per share for the quarter that ended in Aug. 2017 was R-1.12.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. WG Wearne's Days Inventory for the six months ended in Aug. 2017 was 21.11.

Inventory Turnover measures how fast the company turns over its inventory within a year. WG Wearne's Inventory Turnover for the quarter that ended in Aug. 2017 was 8.65.

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. WG Wearne's Inventory-to-Revenue for the quarter that ended in Aug. 2017 was 0.09.

WG Wearne Total Inventories Historical Data

The historical data trend for WG Wearne's Total Inventories 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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WG Wearne Total Inventories Chart

WG Wearne Annual Data

Trend

Feb08

Feb09

Feb10

Feb11

Feb12

Feb13

Feb14

Feb15

Feb16

Feb17

Total Inventories

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19.85

26.87

37.06

27.64

17.97

WG Wearne Semi-Annual Data
	Feb08	Aug08	Feb09	Aug09	Feb10	Aug10	Feb11	Aug11	Feb12	Aug12	Feb13	Aug13	Feb14	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17
Total Inventories	Get a 7-Day Free Trial															37.93	27.64	19.74	17.97	18.81

WG Wearne Total Inventories Calculation

Total Inventories includes the raw materials, work-in-process goods and completely finished goods of a company. It is a portion of a company's current assets.

WG Wearne (JSE:WEA) Total Inventories Explanation

Inventory control is an important part of business operation. If a company does not have enough inventory, it may not be able to meet customers' required delivery time. If it has too much inventory, the cost of holding the inventory can be high.

1. In Ben Graham's calculation of Net-Net Working Capital (NNWC), inventory is only considered worth half of its book value.

WG Wearne's Net-Net Working Capital Per Share for the quarter that ended in Aug. 2017 is

	Net-Net Working Capital Per Share (Q: Aug. 2017 )
=	(Cash And Cash Equivalents	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(0.492	+	0.75 * 0	+	0.5 * 18.811	-	314.406
-	0	-	0)	/	273.038
=	-1.12

2. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

WG Wearne's Days Inventory for the six months ended in Aug. 2017 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Aug. 2017 )	/	Cost of Goods Sold (Q: Aug. 2017 )	*	Days in Period
	=	18.389	/	158.999	*	365 / 2
	=	21.11

3. Inventory Turnover measures how fast the company turns over its inventory within a year.

WG Wearne's Inventory Turnover for the quarter that ended in Aug. 2017 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Aug. 2017 )	/	Average Total Inventories (Q: Aug. 2017 )
	=	158.999	/	18.389
	=	8.65

4. 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.

WG Wearne's Inventory to Revenue for the quarter that ended in Aug. 2017 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Aug. 2017 )	/	Revenue (Q: Aug. 2017 )
	=	18.389	/	213.226
	=	0.09

Be Aware

Manufacturers with durable competitive advantages have the advantage that the products they sell do not change, and therefore will never become obsolete. Buffett likes this advantage.

When identifying manufacturers with durable competitive advantage, look for inventory and net earnings that rise correspondingly. This indicates that the company is finding profitable ways to increase sales which called for an increase in inventory.

Manufacturers with inventories that spike up and down are indicative of competitive industries subject to boom and bust.

WG Wearne Total Inventories Related Terms

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WG Wearne (JSE:WEA) Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » WG Wearne Ltd (JSE:WEA) » Definitions » Total Inventories

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Address

300 Acacia Road, Stonemill Office Park, P.O Box 1674, 3 Kiepersol House, Cresta, ZAF, 2118

Website

http://www.wearne.co.za

WG Wearne Ltd is a supplier of materials and contracting services to the building and construction industry with a complete building material solution. The company is involved in various big construction projects such as the construction of Rand Afrikaans University, the Western Bypass, the Lesotho Highlands Water Scheme, Soccer City and FNB in Fairlands Johannesburg. It operates across South Africa with concentrated operations in Limpopo and Gauteng provinces. its products include sub base materials, concrete stone, road stone, dump rock, ballast stone, crusher sand, building sand, builders mix, plaster sand, generic concrete range, Wearne specialty concrete, high-performance concrete, base course materials and sub base materials.