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Rentech Nitrogen Partners LP (Rentech Nitrogen Partners LP) Inventory Turnover : 1.86 (As of Dec. 2015)


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What is Rentech Nitrogen Partners LP 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. Rentech Nitrogen Partners LP's Cost of Goods Sold for the three months ended in Dec. 2015 was $59.5 Mil. Rentech Nitrogen Partners LP's Average Total Inventories for the quarter that ended in Dec. 2015 was $32.0 Mil. Rentech Nitrogen Partners LP's Inventory Turnover for the quarter that ended in Dec. 2015 was 1.86.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Rentech Nitrogen Partners LP's Days Inventory for the three months ended in Dec. 2015 was 49.10.

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. Rentech Nitrogen Partners LP's Inventory-to-Revenue for the quarter that ended in Dec. 2015 was 0.41.

Rentech Nitrogen Partners LP Inventory Turnover Historical Data

The historical data trend for Rentech Nitrogen Partners LP'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.

* Premium members only.

Rentech Nitrogen Partners LP Inventory Turnover Chart

Rentech Nitrogen Partners LP Annual Data
Trend Sep09 Sep10 Sep11 Dec12 Dec13 Dec14 Dec15
Inventory Turnover
Get a 7-Day Free Trial 8.80 5.95 8.24 9.32 8.02

Rentech Nitrogen Partners LP Quarterly Data
Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15
Inventory Turnover Get a 7-Day Free Trial 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 2.58 1.49 1.75 1.95 1.86

Rentech Nitrogen Partners LP Inventory Turnover Calculation

Rentech Nitrogen Partners LP's Inventory Turnover for the fiscal year that ended in Dec. 2015 is calculated as

Inventory Turnover (A: Dec. 2015 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2015 ) / ((Total Inventories (A: Dec. 2014 ) + Total Inventories (A: Dec. 2015 )) / count )
=239.969 / ((27.736 + 32.116) / 2 )
=239.969 / 29.926
=8.02

Rentech Nitrogen Partners LP's Inventory Turnover for the quarter that ended in Dec. 2015 is calculated as

Inventory Turnover (Q: Dec. 2015 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Dec. 2015 ) / ((Total Inventories (Q: Sep. 2015 ) + Total Inventories (Q: Dec. 2015 )) / count )
=59.49 / ((31.911 + 32.116) / 2 )
=59.49 / 32.0135
=1.86

* 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.

Rentech Nitrogen Partners LP  (NYSE:RNF) 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.

Rentech Nitrogen Partners LP's Days Inventory for the three months ended in Dec. 2015 is calculated as:

Days Inventory =Average Total Inventories (Q: Dec. 2015 )/Cost of Goods Sold (Q: Dec. 2015 )*Days in Period
=32.0135/59.49*365 / 4
=49.10

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.

Rentech Nitrogen Partners LP's Inventory to Revenue for the quarter that ended in Dec. 2015 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Dec. 2015 ) / Revenue (Q: Dec. 2015 )
=32.0135 / 77.381
=0.41

* 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.

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.

Rentech Nitrogen Partners LP Inventory Turnover Related Terms

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Rentech Nitrogen Partners LP (Rentech Nitrogen Partners LP) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » Rentech Nitrogen Partners LP (NYSE:RNF) » Definitions » Inventory Turnover
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Traded in Other Exchanges
N/A
Address
Website
http://www.rentechnitrogen.com
Rentech Nitrogen Partners LP is a Delaware limited partnership formed in July 2011. The Company is engaged in manufacturing of nitrogen fertilizer. The Company owns and operates two fertilizer facilities: East Dubuque Facility and Pasadena Facility. The East Dubuque Facility produces ammonia, UAN, liquid and granular urea, nitric acid and food-grade carbon dioxide, or CO2, using natural gas as its primary feedstock. Some of these products are final products sold to customers, and others, including ammonia, are both final products and feedstocks for other products, such as UAN, nitric acid, liquid urea and granular urea. The Pasadena Facility ceased production of diammonium phosphate and monoammonium phosphate. Its Pasadena Facility is the producer of synthetic ammonium sulfate and the third largest producer of ammonium sulfate in North America. The Pasadena Facility's products are applied to many types of crops including soybeans, potatoes, cotton, canola, alfalfa, corn and wheat. The Company is subject to a number of federal and state laws and regulations related to safety, including the federal Occupational Safety and Health Act, or OSHA, and comparable state statutes, the purpose of which are to protect the health and safety of workers.
Executives
Michael S Burke director C/O AECOM TECHNOLOGY CORPORATION, 555 S. FLOWER STREET, SUITE 3700, LOS ANGELES CA 90071
Keith B Forman director, officer: Chief Executive Officer 7200 TEXAS COMMERCE TOWER, 600 TRAVIS ST, HOUSTON TX 77002
John Howard Diesch director, officer: President 1331 17TH STREET, SUITE 720, DENVER CO 80202
Rentech, Inc. 10 percent owner 10877 WILSHIRE BLVD, 10TH FLOOR, LOS ANGELES CA 90024
Carl C Icahn 10 percent owner C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH-1, SUNNY ISLES BEACH FL 33160
Halbert S Washburn director 515 SOUTH FLOWER STREET 48TH FLOOR, SUITE 4800, LOS ANGELES CA 90071