Puration (Puration) Inventory Turnover : 0.22 (As of Sep. 2007)

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What is Puration 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. Puration's Cost of Goods Sold for the three months ended in Sep. 2007 was $0.10 Mil. Puration's Average Total Inventories for the quarter that ended in Sep. 2007 was $0.45 Mil. Puration's Inventory Turnover for the quarter that ended in Sep. 2007 was 0.22.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Puration's Days Inventory for the three months ended in Sep. 2007 was 412.45.

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.

Puration Inventory Turnover Historical Data

The historical data trend for Puration'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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Puration Inventory Turnover Chart

Puration Annual Data

Trend

Dec04

Dec05

Dec06

Inventory Turnover

0.63

Puration Quarterly Data
	Sep03	Jun04	Sep04	Dec04	Mar05	Jun05	Sep05	Dec05	Mar06	Jun06	Sep06	Dec06	Mar07	Jun07	Sep07
Inventory Turnover	Get a 7-Day Free Trial										0.02	-2.05	1.47	0.50	0.22

Puration Inventory Turnover Calculation

Puration's Inventory Turnover for the fiscal year that ended in Dec. 2006 is calculated as

	Inventory Turnover (A: Dec. 2006 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2006 )	/ (	(Total Inventories (A: Dec. 2005 )	+	Total Inventories (A: Dec. 2006 ))	/	count )
=	0.286	/ (	(0	+	0.452)	/	1 )
=	0.286	/	0.452
=	0.63

Puration's Inventory Turnover for the quarter that ended in Sep. 2007 is calculated as

	Inventory Turnover (Q: Sep. 2007 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2007 )	/ (	(Total Inventories (Q: Jun. 2007 )	+	Total Inventories (Q: Sep. 2007 ))	/	count )
=	0.1	/ (	(0.452	+	0.452)	/	2 )
=	0.1	/	0.452
=	0.22

Puration (OTCPK:PURA) 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.

Puration's Days Inventory for the three months ended in Sep. 2007 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2007 )	/	Cost of Goods Sold (Q: Sep. 2007 )	*	Days in Period
	=	0.452	/	0.1	*	365 / 4
	=	412.45

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.

Puration's Inventory to Revenue for the quarter that ended in Sep. 2007 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2007 )	/	Revenue (Q: Sep. 2007 )
	=	0.452	/	0
	=

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.

Puration Inventory Turnover Related Terms

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Puration (Puration) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Puration Inc (OTCPK:PURA) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

1584 County Road 613, Farmersville, TX, USA, 75442

Website

https://www.purationinc.com

Puration Inc is engaged in the business of researching, designing, developing, producing, marketing and distributing products and systems to improve the quality of the water used daily by people around the world. The company designs and produces personal use water filter bottles and other containers and also has developed its proprietary technology for water filtration and purification. It derives its revenue from the selling of water filtration products.

Executives

Robert Howard Nelson

officer: Chief Financial Officer

1613 EAST 15TH STREET, TULSA OK 74120