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GigPeak Inc  (AMEX:GIG) Total Inventories: $13.69 Mil (As of Dec. 2016)

GigPeak Inc's total inventories for the quarter that ended in Dec. 2016 was $13.69 Mil. GigPeak Inc's average total inventories from the quarter that ended in Sep. 2016 to the quarter that ended in Dec. 2016 was $12.44 Mil.

In Ben Graham's calculation of liquidation value, inventory is only considered worth half of its book value. GigPeak Inc's liquidation value for the quarter that ended in Dec. 2016 was $23.92 Mil.

Inventory can be measured by days sales of inventory (DSI). GigPeak Inc's days sales of inventory (DSI) for the three months ended in Dec. 2016 was 70.01.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. GigPeak Inc's Days Inventory for the three months ended in Dec. 2016 was 241.27.

Inventory Turnover measures how fast the company turns over its inventory within a year. GigPeak Inc's Inventory Turnover for the quarter that ended in Dec. 2016 was 0.38.

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. GigPeak Inc's Inventory-to-Revenue for the quarter that ended in Dec. 2016 was 0.77.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

GigPeak Inc Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Total Inventories Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.11 4.62 5.14 6.88 13.69

GigPeak Inc Quarterly Data

Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16
Total Inventories 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 Premium Member Only Premium Member Only Premium Member Only 6.88 6.97 9.07 11.20 13.69

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.


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 liquidation value, inventory is only considered worth half of its book value.

GigPeak Inc's liquidation value for the quarter that ended in Dec. 2016 is

Liquidation value (Q: Dec. 2016 )
=Cash, Cash Equivalents, Marketable Securities-Total Liabilities+(0.75 * Accounts Receivable)+(0.5 * Total Inventories)
=35.757-30.123+0.75 * 15.258+0.5 * 13.687
=23.92

2. Inventory can be measured by Days Sales of Inventory (DSI).

GigPeak Inc's Days Sales of Inventory for the three months ended in Dec. 2016 is

Days Sales of Inventory (DSI)
=Total Inventories (Q: Dec. 2016 )/Revenue (Q: Dec. 2016 )*Days in Period
=12.443/16.217*365 / 4
=70.01

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

GigPeak Inc's Days Inventory for the three months ended in Dec. 2016 is calculated as:

Days Inventory=Total Inventories (Q: Dec. 2016 )/Cost of Goods Sold (Q: Dec. 2016 )*Days in Period
=12.443/4.706*365 / 4
=241.27

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

GigPeak Inc's Inventory Turnover for the quarter that ended in Dec. 2016 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Dec. 2016 ) / Total Inventories (Q: Dec. 2016 )
=4.706 / 12.443
=0.38

5. 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.

GigPeak Inc's Inventory to Revenue for the quarter that ended in Dec. 2016 is calculated as

Inventory-to-Revenue=Total Inventories (Q: Dec. 2016 ) / Revenue (Q: Dec. 2016 )
=12.443 / 16.217
=0.77

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


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.


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