Continental Coal (ASX:CCC) Days Inventory: 13.07 (As of Jun. 2014) — 46% Below Median


What is Continental Coal Days Inventory?

Continental Coal ASX:CCC Days Inventory is 13.07 as of Jun. 2014, which is 46% below its 10-year median of 24.27. The stock has 4 warning signs investors should review.

Days Inventory is also known as Days Sales of Inventory (DSI). Continental Coal's Average Total Inventories for the six months ended in Jun. 2014 was A$2.18 Mil. Continental Coal's Cost of Goods Sold for the six months ended in Jun. 2014 was A$30.41 Mil. Hence, Continental Coal's Days Inventory for the six months ended in Jun. 2014 was 13.07.

The historical rank and industry rank for Continental Coal's Days Inventory or its related term are showing as below:

ASX:CCC' s Days Inventory Range Over the Past 10 Years
Min: 16.68   Med: 24.27   Max: 28.48
Current: 16.68

During the past 4 years, Continental Coal's highest Days Inventory was 28.48. The lowest was 16.68. And the median was 24.27.

ASX:CCC's Days Inventory is not ranked
in the Steel industry.
Industry Median: 86.96 vs ASX:CCC: 16.68

Continental Coal's Days Inventory declined from Jun. 2013 (21.59) to Jun. 2014 (13.07).

Inventory Turnover measures how fast the company turns over its inventory within a year. Continental Coal's Inventory Turnover for the six months ended in Jun. 2014 was 13.96.

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. Continental Coal's Inventory-to-Revenue for the six months ended in Jun. 2014 was 0.07.

Continental Coal  (ASX:CCC) Days Inventory Explanation

Days Inventory indicates the liquidity of the inventory. Generally, a lower Days Inventory is preferred as it indicates a shorter duration to clear off the inventory. An increase of the ratio may indicate the company's sales slowed. Similar ratios related to Days Inventory are:

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

Continental Coal's Inventory Turnover for the six months ended in Jun. 2014 is calculated as

Inventory Turnover=Cost of Goods Sold / Average Total Inventories
=30.41 / 2.178
=13.96

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.

Continental Coal's Inventory to Revenue for the six months ended in Jun. 2014 is calculated as

Inventory-to-Revenue=Average Total Inventories / Revenue
=2.178 / 30.109
=0.07

* 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

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.

Continental Coal Days Inventory Related Terms

Continental Coal Days Inventory Historical Data

* Premium members only.

The historical data trend for Continental Coal's Days Inventory 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.

Continental Coal Days Inventory Chart

Continental Coal Annual Data
Trend Jun11 Jun12 Jun13 Jun14
Days Inventory
38.33 23.47 27.74 16.57

Continental Coal Semi-Annual Data
Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14
Days Inventory Get a 7-Day Free Trial 22.88 23.43 21.59 20.42 13.07

Continental Coal Days Inventory Competitor Comparison

For the Coking Coal subindustry, Continental Coal's Days Inventory, along with its competitors' market caps and Days Inventory data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Continental Coal Days Inventory vs Steel Industry

For the Steel industry and Basic Materials sector, Continental Coal's Days Inventory distribution charts can be found below:

* The bar in red indicates where Continental Coal's Days Inventory falls into.


Continental Coal Days Inventory Calculation

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

Continental Coal's Days Inventory for the fiscal year that ended in Jun. 2014 is calculated as

Days Inventory (A: Jun. 2014 )
=Average Total Inventories / Cost of Goods Sold*Days in Period
=( (Total Inventories (A: Jun. 2013 ) + Total Inventories (A: Jun. 2014 )) / count ) / Cost of Goods Sold (A: Jun. 2014 )*Days in Period
=( (4.862 + 1.166) / 2 ) / 66.399*365
=3.014 / 66.399*365
=16.57

Continental Coal's Days Inventory for the quarter that ended in Jun. 2014 is calculated as:

Days Inventory (Q: Jun. 2014 )
=Average Total Inventories / Cost of Goods Sold*Days in Period
=( (Total Inventories (Q: Dec. 2013 ) + Total Inventories (Q: Jun. 2014 )) / count ) / Cost of Goods Sold (Q: Jun. 2014 )*Days in Period
=( (3.19 + 1.166) / 2 ) / 30.41*365 / 2
=2.178 / 30.41*365 / 2
=13.07

* 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.

Frequently Asked Questions Learn more about Days Inventory →
What does a Days Inventory of 13.07 mean?
Continental Coal (ASX:CCC) has a Days Inventory of 13.07 as of Jun. 2014. Days inventory represents the average amount of days a company holds inventory before selling it. View historical data on Continental Coal and its competitors. This is 46% below median its historical median of 24.27. Over the past decade, Continental Coal's Days Inventory has ranged from 16.68 to 28.48.
Is Continental Coal's Days Inventory too high?
Continental Coal's current Days Inventory of 13.07 is 46% below median its 10-year median of 24.27. Over the past 10 years, this metric has ranged from a low of 16.68 to a high of 28.48. The Steel industry median Days Inventory is 86.96. Continental Coal's value of 13.07 is 85% below this industry median.
How does Continental Coal's Days Inventory compare to competitors?
Continental Coal's Days Inventory of 13.07 can be compared against companies in the Steel industry. The industry median Days Inventory is 86.96. Continental Coal's value of 13.07 is 85% below this benchmark. Historically, Continental Coal's own Days Inventory has ranged from 16.68 to 28.48 over the past decade. While the company's 10-year median is 24.27 vs. the industry median of 86.96, Continental Coal has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Days Inventory for a Steel company?
The median Days Inventory among Steel companies is 86.96, based on 586 companies in the industry. Companies in the top quartile (top 25%) have a Days Inventory significantly above this median, while those in the bottom quartile fall well below. However, Days Inventory should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Continental Coal's current Days Inventory of 13.07 is 85% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Days Inventory mean?
A high Days Inventory can signal that a stock is expensive relative to its fundamentals. Days inventory represents the average amount of days a company holds inventory before selling it. View historical data on Continental Coal and its competitors. For the Steel industry, the median Days Inventory is 86.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Continental Coal's current Days Inventory is 13.07, which is 46% below median its own 10-year median of 24.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Continental Coal stock overvalued right now?
Continental Coal (ASX:CCC) has a current Days Inventory of 13.07. The current Days Inventory is 13.07, which is 46% below median its 10-year median of 24.27 and 85% below the Steel industry median of 86.96. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Days Inventory calculated?
Days Inventory is calculated from a company's financial statements. For Continental Coal (ASX:CCC), the current Days Inventory is 13.07 as of Jun. 2014. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Continental Coal Business Description

Address 9th Floor, Fredman Towers, 13 Fredman Drive, Sandton, ZAF, 2196
Continental Coal Ltd is a coal exploration and development company. It is engaged in producing, development and exploration of coal in its projects located in South Africa's coal fields. Its three main operating mines are Vlakvarkfontein, Ferreira and Penumbra mine. Its development projects include De Wittekrans development project; and exploration projects, such as Vaalbank, Leiden and Knapdaar in South Africa, as well as Kweneng and Serowe exploration projects in Botswana.