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Heartland Payment Systems Inc  (NYSE:HPY) Total Inventories: $13 Mil (As of Dec. 2015)

Heartland Payment Systems Inc's total inventories for the quarter that ended in Dec. 2015 was $13 Mil. Heartland Payment Systems Inc's average total inventories from the quarter that ended in Sep. 2015 to the quarter that ended in Dec. 2015 was $12 Mil.

In Ben Graham's calculation of liquidation value, inventory is only considered worth half of its book value. Heartland Payment Systems Inc's liquidation value for the quarter that ended in Dec. 2015 was $-937 Mil.

Inventory can be measured by days sales of inventory (DSI). Heartland Payment Systems Inc's days sales of inventory (DSI) for the three months ended in Dec. 2015 was 1.51.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Heartland Payment Systems Inc's Days Inventory for the three months ended in Dec. 2015 was 1.78.

Inventory Turnover measures how fast the company turns over its inventory within a year. Heartland Payment Systems Inc's Inventory Turnover for the quarter that ended in Dec. 2015 was 51.35.

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. Heartland Payment Systems Inc's Inventory-to-Revenue for the quarter that ended in Dec. 2015 was 0.02.


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.

Heartland Payment Systems Inc Annual Data

Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Total Inventories Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.05 9.69 11.09 12.05 12.86

Heartland Payment Systems Inc Quarterly Data

Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15
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 12.05 11.27 10.97 10.28 12.86

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.

Heartland Payment Systems Inc's liquidation value for the quarter that ended in Dec. 2015 is

Liquidation value (Q: Dec. 2015 )
=Cash, Cash Equivalents, Marketable Securities-Total Liabilities+(0.75 * Accounts Receivable)+(0.5 * Total Inventories)
=56.592-1200.857+0.75 * 267.292+0.5 * 12.856
=-937

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

Heartland Payment Systems Inc's Days Sales of Inventory for the three months ended in Dec. 2015 is

Days Sales of Inventory (DSI)
=Total Inventories (Q: Dec. 2015 )/Revenue (Q: Dec. 2015 )*Days in Period
=11.5675/698.578*365 / 4
=1.51

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

Heartland Payment Systems Inc's Days Inventory for the three months ended in Dec. 2015 is calculated as:

Days Inventory=Total Inventories (Q: Dec. 2015 )/Cost of Goods Sold (Q: Dec. 2015 )*Days in Period
=11.5675/593.941*365 / 4
=1.78

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

Heartland Payment Systems Inc's Inventory Turnover for the quarter that ended in Dec. 2015 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Dec. 2015 ) / Total Inventories (Q: Dec. 2015 )
=593.941 / 11.5675
=51.35

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.

Heartland Payment Systems Inc's Inventory to Revenue for the quarter that ended in Dec. 2015 is calculated as

Inventory-to-Revenue=Total Inventories (Q: Dec. 2015 ) / Revenue (Q: Dec. 2015 )
=11.5675 / 698.578
=0.02

* 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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