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Sirona Dental Systems Inc  (NAS:SIRO) Total Inventories: $132 Mil (As of Dec. 2015)

Sirona Dental Systems Inc's total inventories for the quarter that ended in Dec. 2015 was $132 Mil. Sirona Dental Systems Inc's average total inventories from the quarter that ended in Sep. 2015 to the quarter that ended in Dec. 2015 was $131 Mil.

In Ben Graham's calculation of liquidation value, inventory is only considered worth half of its book value. Sirona Dental Systems Inc's liquidation value for the quarter that ended in Dec. 2015 was $186 Mil.

Inventory can be measured by days sales of inventory (DSI). Sirona Dental Systems Inc's days sales of inventory (DSI) for the three months ended in Dec. 2015 was 39.19.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Sirona Dental Systems Inc's Days Inventory for the three months ended in Dec. 2015 was 91.57.

Inventory Turnover measures how fast the company turns over its inventory within a year. Sirona Dental Systems Inc's Inventory Turnover for the quarter that ended in Dec. 2015 was 1.00.

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. Sirona Dental Systems Inc's Inventory-to-Revenue for the quarter that ended in Dec. 2015 was 0.43.


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.

Sirona Dental Systems Inc Annual Data

Mar06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15
Total Inventories Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 93.03 81.01 109.20 123.40 129.40

Sirona Dental 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 125.90 126.40 132.40 129.40 131.90

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.

Sirona Dental 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)
=485-509.2+0.75 * 192.9+0.5 * 131.9
=186

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

Sirona Dental 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
=130.65/304.2*365 / 4
=39.19

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

Sirona Dental 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
=130.65/130.2*365 / 4
=91.57

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

Sirona Dental 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 )
=130.2 / 130.65
=1.00

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.

Sirona Dental 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 )
=130.65 / 304.2
=0.43

* 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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