KMG Chemicals (KMG Chemicals) Total Inventories : $54.2 Mil (As of Jul. 2018)

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What is KMG Chemicals Total Inventories?

KMG Chemicals's total inventories for the quarter that ended in Jul. 2018 was $54.2 Mil. KMG Chemicals's average total inventories from the quarter that ended in Apr. 2018 to the quarter that ended in Jul. 2018 was $54.2 Mil.

In Ben Graham's calculation of Net-Net Working Capital, inventory is only considered worth half of its book value. KMG Chemicals's Net-Net Working Capital per share for the quarter that ended in Jul. 2018 was $-19.63.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. KMG Chemicals's Days Inventory for the three months ended in Jul. 2018 was 69.64.

Inventory Turnover measures how fast the company turns over its inventory within a year. KMG Chemicals's Inventory Turnover for the quarter that ended in Jul. 2018 was 1.31.

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. KMG Chemicals's Inventory-to-Revenue for the quarter that ended in Jul. 2018 was 0.44.

KMG Chemicals Total Inventories Historical Data

The historical data trend for KMG Chemicals'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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KMG Chemicals Total Inventories Chart

KMG Chemicals Annual Data

Trend

Jul09

Jul10

Jul11

Jul12

Jul13

Jul14

Jul15

Jul16

Jul17

Jul18

Total Inventories

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45.27

42.08

37.40

46.48

54.22

KMG Chemicals Quarterly Data
	Oct13	Jan14	Apr14	Jul14	Oct14	Jan15	Apr15	Jul15	Oct15	Jan16	Apr16	Jul16	Oct16	Jan17	Apr17	Jul17	Oct17	Jan18	Apr18	Jul18
Total Inventories	Get a 7-Day Free Trial															46.48	46.17	49.53	54.09	54.22

KMG Chemicals 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.

KMG Chemicals (NYSE:KMG) 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.

KMG Chemicals's Net-Net Working Capital Per Share for the quarter that ended in Jul. 2018 is

	Net-Net Working Capital Per Share (Q: Jul. 2018 )
=	(Cash And Cash Equivalents	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(24.436	+	0.75 * 61.895	+	0.5 * 54.218	-	402.367
-	0	-	0)	/	15.5097
=	-19.63

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

KMG Chemicals's Days Inventory for the three months ended in Jul. 2018 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jul. 2018 )	/	Cost of Goods Sold (Q: Jul. 2018 )	*	Days in Period
	=	54.1525	/	70.959	*	365 / 4
	=	69.64

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

KMG Chemicals's Inventory Turnover for the quarter that ended in Jul. 2018 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Jul. 2018 )	/	Average Total Inventories (Q: Jul. 2018 )
	=	70.959	/	54.1525
	=	1.31

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.

KMG Chemicals's Inventory to Revenue for the quarter that ended in Jul. 2018 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jul. 2018 )	/	Revenue (Q: Jul. 2018 )
	=	54.1525	/	122.394
	=	0.44

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.

KMG Chemicals Total Inventories Related Terms

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KMG Chemicals (KMG Chemicals) Business Description

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Address

Website

http://www.kmgchemicals.com

KMG Chemicals Inc manufactures and sells a variety of chemicals and chemical-based products. The firm organizes itself into two segments based on product type. The electronic chemicals segment, which generates the majority of revenue, sells chemicals primarily to manufacturers of semiconductors. The other chemicals segment sells industrial sealants and lubricants primarily to the oil and gas storage and distribution industry as well as wood treatment chemicals used primarily to treat utility poles and cross arms. The majority of revenue comes from the United States.

Executives

Hunter John C Iii	director	C/O PENFORD CORPORATION, 7094 S. REVERE PARKWAY, CENTENNIAL CO 80112-3932
Karen A. Twitchell	director	9 COURTLANDT PLACE, HOUSTON TX 77006
Christopher T. Fraser	director, officer: President and CEO	9555 WEST SAM HOUSTON PARKWAY SOUTH, SUITE 600, HOUSTON TX 77099
Margaret C Montana	director	910 LOUISIANA STREET, HOUSTON TX 77002
George W Gilman	director	710 N. POST OAK RD., SUITE 400, HOUSTON TX 77024
James Gentilcore	director	NINE HAMPSHIRE STREET, MANSFIELD MA 02048
Malinda G Passmore	officer: VP and CFO	9555 W SAM HOUSTON PARKWAY S, SUITE 600, HOUSTON TX 77099
Stephen A Thorington	director	700 MILAM, SUITE 3100, HOUSTON TX 77002
Gendell Jeffrey L Et Al	other: Former 10% Owner	200 PARK AVENUE SUITE 3900, NEW YORK NY 10166