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Walking Co Holdings Inc  (OTCPK:WALK) Total Inventories: $75.0 Mil (As of Sep. 2008)

Walking Co Holdings Inc's total inventories for the quarter that ended in Sep. 2008 was $75.0 Mil. Walking Co Holdings Inc's average total inventories from the quarter that ended in Jun. 2008 to the quarter that ended in Sep. 2008 was $71.5 Mil.

In Ben Graham's calculation of liquidation value, inventory is only considered worth half of its book value. Walking Co Holdings Inc's liquidation value for the quarter that ended in Sep. 2008 was $-62.3 Mil.

Inventory can be measured by days sales of inventory (DSI). Walking Co Holdings Inc's days sales of inventory (DSI) for the three months ended in Sep. 2008 was 109.71.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Walking Co Holdings Inc's Days Inventory for the three months ended in Sep. 2008 was 211.98.

Inventory Turnover measures how fast the company turns over its inventory within a year. Walking Co Holdings Inc's Inventory Turnover for the quarter that ended in Sep. 2008 was 0.43.

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. Walking Co Holdings Inc's Inventory-to-Revenue for the quarter that ended in Sep. 2008 was 1.20.


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.

Walking Co Holdings Inc Annual Data

Dec98 Dec99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07
Total Inventories Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 24.75 39.58 44.52 58.61 63.93

Walking Co Holdings Inc Quarterly Data

Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08
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 82.62 63.93 77.03 67.98 75.03

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.

Walking Co Holdings Inc's liquidation value for the quarter that ended in Sep. 2008 is

Liquidation value (Q: Sep. 2008 )
=Cash, Cash Equivalents, Marketable Securities-Total Liabilities+(0.75 * Accounts Receivable)+(0.5 * Total Inventories)
=0.536-104.186+0.75 * 5.098+0.5 * 75.028
=-62.3

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

Walking Co Holdings Inc's Days Sales of Inventory for the three months ended in Sep. 2008 is

Days Sales of Inventory (DSI)
=Total Inventories (Q: Sep. 2008 )/Revenue (Q: Sep. 2008 )*Days in Period
=71.5015/59.47*365 / 4
=109.71

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

Walking Co Holdings Inc's Days Inventory for the three months ended in Sep. 2008 is calculated as:

Days Inventory=Total Inventories (Q: Sep. 2008 )/Cost of Goods Sold (Q: Sep. 2008 )*Days in Period
=71.5015/30.779*365 / 4
=211.98

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

Walking Co Holdings Inc's Inventory Turnover for the quarter that ended in Sep. 2008 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Sep. 2008 ) / Total Inventories (Q: Sep. 2008 )
=30.779 / 71.5015
=0.43

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.

Walking Co Holdings Inc's Inventory to Revenue for the quarter that ended in Sep. 2008 is calculated as

Inventory-to-Revenue=Total Inventories (Q: Sep. 2008 ) / Revenue (Q: Sep. 2008 )
=71.5015 / 59.47
=1.20

* 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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