Precision Castparts (Precision Castparts) Inventory Turnover : 0.42 (As of Sep. 2015)

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What is Precision Castparts Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Precision Castparts's Cost of Goods Sold for the three months ended in Sep. 2015 was $1,572 Mil. Precision Castparts's Average Total Inventories for the quarter that ended in Sep. 2015 was $3,765 Mil. Precision Castparts's Inventory Turnover for the quarter that ended in Sep. 2015 was 0.42.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Precision Castparts's Days Inventory for the three months ended in Sep. 2015 was 218.52.

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. Precision Castparts's Inventory-to-Revenue for the quarter that ended in Sep. 2015 was 1.65.

Precision Castparts Inventory Turnover Historical Data

The historical data trend for Precision Castparts's Inventory Turnover 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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Precision Castparts Inventory Turnover Chart

Precision Castparts Annual Data

Trend

Mar06

Mar07

Mar08

Mar09

Mar10

Mar11

Mar12

Mar13

Mar14

Mar15

Inventory Turnover

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2.98

3.02

2.36

1.95

1.91

Precision Castparts Quarterly Data
	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15
Inventory Turnover	Get a 7-Day Free Trial															0.46	0.44	0.50	0.44	0.42

Precision Castparts Inventory Turnover Calculation

Precision Castparts's Inventory Turnover for the fiscal year that ended in Mar. 2015 is calculated as

	Inventory Turnover (A: Mar. 2015 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2015 )	/ (	(Total Inventories (A: Mar. 2014 )	+	Total Inventories (A: Mar. 2015 ))	/	count )
=	6752	/ (	(3426	+	3640)	/	2 )
=	6752	/	3533
=	1.91

Precision Castparts's Inventory Turnover for the quarter that ended in Sep. 2015 is calculated as

	Inventory Turnover (Q: Sep. 2015 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2015 )	/ (	(Total Inventories (Q: Jun. 2015 )	+	Total Inventories (Q: Sep. 2015 ))	/	count )
=	1572	/ (	(3760	+	3769)	/	2 )
=	1572	/	3764.5
=	0.42

Precision Castparts (NYSE:PCP) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

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

Precision Castparts's Days Inventory for the three months ended in Sep. 2015 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2015 )	/	Cost of Goods Sold (Q: Sep. 2015 )	*	Days in Period
	=	3764.5	/	1572	*	365 / 4
	=	218.52

2. 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.

Precision Castparts's Inventory to Revenue for the quarter that ended in Sep. 2015 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2015 )	/	Revenue (Q: Sep. 2015 )
	=	3764.5	/	2287
	=	1.65

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Precision Castparts Inventory Turnover Related Terms

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Precision Castparts (Precision Castparts) Business Description

Industry

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Address

Website

http://www.precast.com

Precision Castparts Corp was incorporated in the State of Oregon. The Company is a manufacturer of complex metal components and products provides high-quality investment castings, forgings and fasteners/fastener systems for critical aerospace and power applications. It also provides investment castings and forgings for general industrial, armament, medical and other applications; nickel alloys and mill forms, as well as cobalt alloys, for the aerospace, chemical processing, oil and gas, pollution control and other industries; seamless pipe for coal-fired, industrial gas turbine, and nuclear power plants, as well as oil and gas applications; fasteners for automotive and general industrial markets; specialty alloys for the investment casting industry; refiner plates, screen cylinders and other products for the pulp and paper industry; metal-injection-molded and ThixoFormedparts for automotive and other markets; grinder pumps and affiliated components for low pressure sewer systems; critical auxiliary equipment and gas monitoring systems for the power generation industry; and metalworking tools for the fastener market and other applications. It manufactures complex metal components and products in three main business segments: Investment Cast Products, Forged Products and Fastener Products. The Company's Investment Cast Products segment manufactures investment castings for aircraft engines, IGT engines, airframes, medical prostheses, armament, unmanned aerial vehicles and other industrial applications. The segment also provides alloys to PCC's investment casting operations, as well as to other investment casting companies. It manufactures forged components for the aerospace and power generation markets. Forged Products' aerospace and IGT sales are mainly derived from the same large engine customers served by the Investment Cast Products segment, with additional aerospace sales to manufacturers of landing gear and airframes. Therefore, the dynamics of the aerospace and IGT markets, as described in the Investment Cast Products section above, are virtually the same for Forged Products. It manufactures forged components for the aerospace and power generation markets. Forged Products' aerospace and IGT sales are mainly derived from the same large engine customers served by the Investment Cast Products segment, with additional aerospace sales to manufacturers of landing gear and airframes. Therefore, the dynamics of the aerospace and IGT markets, as described in the Investment Cast Products section above, are virtually the same for Forged Products. The Company's main competitors are Ladish Co., a subsidiary of Allegheny Technologies, Inc., Fortech, S.A. and Thyssen AG for aerospace turbine products, Alcoa Inc. and Firth Rixson Limited for aerospace structural products, Vallourec & Mannesmann Tubes and Sumitomo Corporation for energy products and Allegheny Technologies, Inc., Carpenter Technology Corporation, Haynes International, Inc., an

Executives

Ulrich Schmidt	director	PRECISION CASTPARTS CORP., 4650 SW MACADAM AVENUE, SUITE 400, PORTLAND OR 97239
Richard L Wambold	director	C/O PACTIV CORP, 1900 W FIELD COURT, LAKE FOREST IL 60045
Lester L Lyles	director	C/O MTC TECHNOLOGIES INC, 4032 LINDEN AVENUE, DAYTON OH 45432
Timothy A Wicks	director	C/O PRECISION CASTPARTS CORP., 4650 SW MACADAM AVENUE, SUITE 400, PORTLAND OR 97239
Andrew Masterman	officer: EVP, Pres. Wyman-Gordon	401 PLYMOUTH ROAD, SUITE 500, PLYMOUTH MEETING PA 19462-1646
Kevin M Stein	officer: Exec VP	TRANSDIGM GROUP INCORPORATED, 1301 EAST 9TH STREET, SUITE 3000, CLEVELAND OH 44114
Steven G Rothmeier	director	C/O E.W BLANCH HOLDINGS INC, 500 N. AKARD #4500, DALLAS TX 75201
Russell S Pattee	officer: VP and Corporate Controller	PRECISION CASTPARTS CORP., 4650 SW MACADAM AVENUE, SUITE 400, PORTLAND OR 97239
Chris Ayers	officer: Exec. VP, Pres. PCC Forgings	4650 S.W. MACADAM, SUITE #440, PORTLAND OR 97239
William D Larsson	officer: Sr. VP and CFO	35 SHARPS CIRCLE, RENO NV 89519
Byron O Pond	director	C/O GSI GROUP INC., 125 MIDDLESEX TURNPIKE, BEDFORD MA 01730-1409
Wayne F Robbins	officer: President; PCC Flow Technologi	4650 SW MACADAM, STE 440, PORTLAND OR 97239