Sonic (SONC) Total Inventories : $1.8 Mil (As of Aug. 2018)

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What is Sonic Total Inventories?

Sonic's total inventories for the quarter that ended in Aug. 2018 was $1.8 Mil. Sonic's average total inventories from the quarter that ended in May. 2018 to the quarter that ended in Aug. 2018 was $0.9 Mil.

In Ben Graham's calculation of Net-Net Working Capital, inventory is only considered worth half of its book value. Sonic's Net-Net Working Capital per share for the quarter that ended in Aug. 2018 was $-21.48.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Sonic's Days Inventory for the three months ended in Aug. 2018 was 0.95.

Inventory Turnover measures how fast the company turns over its inventory within a year. Sonic's Inventory Turnover for the quarter that ended in Aug. 2018 was 95.82.

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. Sonic's Inventory-to-Revenue for the quarter that ended in Aug. 2018 was 0.01.

Sonic Total Inventories Historical Data

The historical data trend for Sonic'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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Sonic Total Inventories Chart

Sonic Annual Data

Trend

Aug09

Aug10

Aug11

Aug12

Aug13

Aug14

Aug15

Aug16

Aug17

Aug18

Total Inventories

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3.35

3.82

3.32

2.34

1.77

Sonic Quarterly Data
	Nov13	Feb14	May14	Aug14	Nov14	Feb15	May15	Aug15	Nov15	Feb16	May16	Aug16	Nov16	Feb17	May17	Aug17	Nov17	Feb18	May18	Aug18
Total Inventories	Get a 7-Day Free Trial															2.34	-	-	-	1.77

Sonic 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.

Sonic (NAS:SONC) 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.

Sonic's Net-Net Working Capital Per Share for the quarter that ended in Aug. 2018 is

	Net-Net Working Capital Per Share (Q: Aug. 2018 )
=	(Cash And Cash Equivalents	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(39.835	+	0.75 * 20.177	+	0.5 * 1.774	-	819.98
-	0	-	0)	/	35.575
=	-21.48

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

Sonic's Days Inventory for the three months ended in Aug. 2018 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Aug. 2018 )	/	Cost of Goods Sold (Q: Aug. 2018 )	*	Days in Period
	=	0.887	/	84.989	*	365 / 4
	=	0.95

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

Sonic's Inventory Turnover for the quarter that ended in Aug. 2018 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Aug. 2018 )	/	Average Total Inventories (Q: Aug. 2018 )
	=	84.989	/	0.887
	=	95.82

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.

Sonic's Inventory to Revenue for the quarter that ended in Aug. 2018 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Aug. 2018 )	/	Revenue (Q: Aug. 2018 )
	=	0.887	/	111.754
	=	0.01

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.

Sonic Total Inventories Related Terms

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Sonic (SONC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Sonic Corp (NAS:SONC) » Definitions » Total Inventories

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.sonicdrivein.com

Sonic Corp operates and franchises drive-in restaurants throughout the United States. The restaurants typically consist of a building that houses only a kitchen to go along with 16 to 24 parking spaces that have their own payment terminals, intercom speakers, and menu boards. Carhops serve customers in their cars. Many locations also have a drive-thru lane and patio seating as alternatives. Sonic franchises roughly 90% of its restaurants, and the royalty revenue the company earns on franchise sales contributes roughly a quarter of total company revenue. Company-operated stores provide the balance of total revenue. Sonic owns the property on which hundreds of its restaurants are located. For those properties that house franchised stores, franchisees lease from the company.

Executives

Steven A Davis	director	3776 SOUTH HIGH ST, COLUMBUS OH 43207
Lauren R Hobart	director	345 COURT STREET, CORAOPOLIS PA 15275
Tony Bartel	director	625 WESTPORT PARKWAY, GRAPEVINE TX 76051
Kathy L Taylor	director	C/O FREDERIC DORWART LAWYERS, 124 EAST FOURTH STREET, TULSA OK 74103
Pedro Claudia San	officer: President	300 JOHNNY BENCH DRIVE, OKLAHOMA CITY OK 73104
Kate S Lavelle	director	24089 3RD STREET, FAIRHOPE AL 36532
Federico F Pena	director	711 HIGH STREET, DES MOINES IA 50392-0300
J Larry Nichols	director	DEVON ENERGY CORP, 20 NORTH BROADWAY STE 1500, OKLAHOMA CITY OK 73102-8260
Southeastern Asset Management Inc/tn/	10 percent owner	6410 POPLAR AVENUE, SUITE 900, MEMPHIS TN 38119
Longleaf Partners Funds Trust	10 percent owner	C/O SOUTHEASTERN ASSET MANAGEMENT, 6410 POPLAR AVE, SUITE 900, MEMPHIS TN 38119
Todd Whitney Smith	officer: President and CMO	300 JOHNNY BENCH DRIVE, OKLAHOMA CITY OK 73104
Craig Jeffrey Miller	officer: Former Officer of Subsidiary	5008 HARTRIDGE WAY, GREENSBORO NC 27407
Robert M Rosenberg	director
Michael J Maples	director	2208 WINDSOR ROAD, AUSTIN TX 78703
Douglas N Benham	director