SolarCity (SolarCity) Inventory Turnover : 0.59 (As of Sep. 2016)

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What is SolarCity 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. SolarCity's Cost of Goods Sold for the three months ended in Sep. 2016 was $129.0 Mil. SolarCity's Average Total Inventories for the quarter that ended in Sep. 2016 was $218.0 Mil. SolarCity's Inventory Turnover for the quarter that ended in Sep. 2016 was 0.59.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. SolarCity's Days Inventory for the three months ended in Sep. 2016 was 154.22.

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. SolarCity's Inventory-to-Revenue for the quarter that ended in Sep. 2016 was 1.09.

SolarCity Inventory Turnover Historical Data

The historical data trend for SolarCity'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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SolarCity Inventory Turnover Chart

SolarCity Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Inventory Turnover

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0.33

0.87

1.25

1.07

1.00

SolarCity Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
Inventory Turnover	Get a 7-Day Free Trial															0.30	0.27	0.34	0.43	0.59

SolarCity Inventory Turnover Calculation

SolarCity'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 )
=	280.791	/ (	(217.223	+	342.951)	/	2 )
=	280.791	/	280.087
=	1.00

SolarCity's Inventory Turnover for the quarter that ended in Sep. 2016 is calculated as

	Inventory Turnover (Q: Sep. 2016 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2016 )	/ (	(Total Inventories (Q: Jun. 2016 )	+	Total Inventories (Q: Sep. 2016 ))	/	count )
=	128.959	/ (	(229.699	+	206.205)	/	2 )
=	128.959	/	217.952
=	0.59

SolarCity (NAS:SCTY) 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.

SolarCity's Days Inventory for the three months ended in Sep. 2016 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2016 )	/	Cost of Goods Sold (Q: Sep. 2016 )	*	Days in Period
	=	217.952	/	128.959	*	365 / 4
	=	154.22

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.

SolarCity's Inventory to Revenue for the quarter that ended in Sep. 2016 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2016 )	/	Revenue (Q: Sep. 2016 )
	=	217.952	/	200.551
	=	1.09

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.

SolarCity Inventory Turnover Related Terms

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SolarCity (SolarCity) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » SolarCity Corp (NAS:SCTY) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.solarcity.com

SolarCity Corp was incorporated as a Delaware corporation on June 21, 2006. The Company is engaged in the design, manufacture, installation and sale or lease of solar energy systems to residential and commercial customers, or sale of electricity generated by solar energy systems to customers. Its customers include residential, commercial and government. The residential customers are individual homeowners who want to switch to cleaner, more affordable energy. Residential customers also include homeowners within communities developed by home builders the company is partnered with. The Commercial customers represent diverse business sectors, including technology, retail, manufacturing, agriculture and nonprofits, including customers such as Walmart, eBay, HP, Walgreens, Intel, and Safeway, Mexican businesses such as Tiendas Soriana, and thousands of other businesses across the United States, including SMBs. For government the company has installed solar energy systems for various federal, state and municipal government entities, including the U.S. Air Force, Army, Marines and Navy, the City of Lancaster, the City of San Jose, the City of Sacramento, the Department of Homeland Security and a number of schools and universities. The Company market and sell its products and services through a national sales organization that includes a direct outside sales force, a door-to-door sales force, call centers, a channel partner network and a robust customer referral program. It purchases components such as solar panels and inverters directly from multiple manufacturers. The Company's competitors include Vivint Solar Inc., Sunrun Inc., NRG Home Solar, Sungevity, Inc., Trinity Solar, Verengo, Inc., SunPower Corporation, SunEdison LLC, Borrego Solar Systems, Inc., G&S Solar Installers, Cenergy Power and numerous other companies. The Company's operations are subject to stringent and complex federal, state and local laws and regulations governing the occupational health and safety of its employees, wage regulations and environmental regulations.

Executives

Draper Associates L P	10 percent owner	55 EAST 3RD AVENUE, SAN MATEO CA 94401
Draper Associates Riskmasters Fund, Llc	10 percent owner	2882 SAND HILL ROAD, SUITE 150, MENLO PARK CA 94025
Antonio J. Gracias	director	C/O VALOR EQUITY PARTNERS, 200 SOUTH MICHIGAN AVENUE, SUITE 1020, CHICAGO IL 60604
Elon Musk	director, 10 percent owner	C/O TESLA MOTORS, INC., 3500 DEER CREEK ROAD, PALO ALTO CA 94304
Stephen T Jurvetson	10 percent owner	2882 SAND HILL ROAD, SUITE 150, MENLO PARK CA 94025
Jeffrey B Straubel	director	C/O TESLA MOTORS, INC., 3500 DEER CREEK ROAD, PALO ALTO CA 94304
Timothy C Draper	10 percent owner	55 EAST 3RD AVENUE, SAN MATEO CA 94401
Fisher John H N	director	2882 SAND HILL ROAD, SUITE 150, MENLO PARK CA 94025
Draper Fisher Jurvetion Partners Growth Fund 2006 Llc	10 percent owner	2882 SAND HILL RD SUITE 150, MENLO PARK CA 94025
Draper Fisher Jurvetson Fund Ix Lp	10 percent owner	PO Box 265GT Walker House Mary St, Georgetown Grand Cayman, Cayman Islands E9 00000
Draper Fisher Jurvetson Growth Fund 2006 Lp	10 percent owner	2882 SAND HILL RD STE 150, MENLO PARK CA 94025
Draper Fisher Jurvetson Partners Ix, Llc	10 percent owner	2882 SAND HILL ROAD, SUITE 150, MENLO PARK CA 94023
Kendall Donald R Jr	director	3055 CLEARVIEW WAY, SAN MATEO CA 94402
Brad W Buss	officer: Chief Financial Officer	198 CHAMPION COURT, SAN JOSE CA 95134
Van De Bunt Bennet	director	3340 OCEAN PARK BOULEVARD, 3RD FLOOR, SANTA MONICA CA 90405