African Copper (LSE:ACU) Days Inventory: 64.06 (As of Sep. 2014) — 13% Below Median


What is African Copper Days Inventory?

African Copper LSE:ACU +10.00% Days Inventory is 64.06 as of Sep. 2014, which is 13% below its 10-year median of 73.89. The stock has 4 warning signs investors should review.

Days Inventory is also known as Days Sales of Inventory (DSI). African Copper's Average Total Inventories for the six months ended in Sep. 2014 was £4.59 Mil. African Copper's Cost of Goods Sold for the six months ended in Sep. 2014 was £13.09 Mil. Hence, African Copper's Days Inventory for the six months ended in Sep. 2014 was 64.06.

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

LSE:ACU' s Days Inventory Range Over the Past 10 Years
Min: 64.12   Med: 73.89   Max: 87.84
Current: 74.25

During the past 10 years, African Copper's highest Days Inventory was 87.84. The lowest was 64.12. And the median was 73.89.

LSE:ACU's Days Inventory is not ranked
in the Metals & Mining industry.
Industry Median: 85.57 vs LSE:ACU: 74.25

African Copper's Days Inventory declined from Sep. 2013 (78.32) to Sep. 2014 (64.06).

Inventory Turnover measures how fast the company turns over its inventory within a year. African Copper's Inventory Turnover for the six months ended in Sep. 2014 was 2.85.

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. African Copper's Inventory-to-Revenue for the six months ended in Sep. 2014 was 0.24.

African Copper  (LSE:ACU) 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.

African Copper's Inventory Turnover for the six months ended in Sep. 2014 is calculated as

Inventory Turnover=Cost of Goods Sold / Average Total Inventories
=13.085 / 4.593
=2.85

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.

African Copper's Inventory to Revenue for the six months ended in Sep. 2014 is calculated as

Inventory-to-Revenue=Average Total Inventories / Revenue
=4.593 / 18.93
=0.24

* 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.

African Copper Days Inventory Related Terms

African Copper Days Inventory Historical Data

* Premium members only.

The historical data trend for African Copper'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.

African Copper Days Inventory Chart

African Copper Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Mar11 Mar12 Mar13 Mar14
Days Inventory
Get a 7-Day Free Trial Premium Member Only Premium Member Only 62.90 87.65 80.50 73.76 78.28

African Copper Semi-Annual Data
Jun05 Dec05 Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14
Days Inventory 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 79.46 72.29 78.32 68.26 64.06

African Copper Days Inventory Competitor Comparison

For the Copper subindustry, African Copper'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.

African Copper Days Inventory vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, African Copper's Days Inventory distribution charts can be found below:

* The bar in red indicates where African Copper's Days Inventory falls into.


African Copper Days Inventory Calculation

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

African Copper's Days Inventory for the fiscal year that ended in Mar. 2014 is calculated as

Days Inventory (A: Mar. 2014 )
=Average Total Inventories / Cost of Goods Sold*Days in Period
=( (Total Inventories (A: Mar. 2013 ) + Total Inventories (A: Mar. 2014 )) / count ) / Cost of Goods Sold (A: Mar. 2014 )*Days in Period
=( (5.895 + 4.59) / 2 ) / 24.446*365
=5.2425 / 24.446*365
=78.28

African Copper's Days Inventory for the quarter that ended in Sep. 2014 is calculated as:

Days Inventory (Q: Sep. 2014 )
=Average Total Inventories / Cost of Goods Sold*Days in Period
=( (Total Inventories (Q: Mar. 2014 ) + Total Inventories (Q: Sep. 2014 )) / count ) / Cost of Goods Sold (Q: Sep. 2014 )*Days in Period
=( (4.59 + 4.596) / 2 ) / 13.085*365 / 2
=4.593 / 13.085*365 / 2
=64.06

* 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 64.06 mean?
African Copper (LSE:ACU) has a Days Inventory of 64.06 as of Sep. 2014. Days inventory represents the average amount of days a company holds inventory before selling it. View historical data on African Copper and its competitors. This is 13% below median its historical median of 73.89. Over the past decade, African Copper's Days Inventory has ranged from 64.12 to 87.84.
Is African Copper's Days Inventory too high?
African Copper's current Days Inventory of 64.06 is 13% below median its 10-year median of 73.89. Over the past 10 years, this metric has ranged from a low of 64.12 to a high of 87.84. The Metals & Mining industry median Days Inventory is 85.57. African Copper's value of 64.06 is 25.1% below this industry median.
How does African Copper's Days Inventory compare to competitors?
African Copper's Days Inventory of 64.06 can be compared against companies in the Metals & Mining industry. The industry median Days Inventory is 85.57. African Copper's value of 64.06 is 25.1% below this benchmark. Historically, African Copper's own Days Inventory has ranged from 64.12 to 87.84 over the past decade. While the company's 10-year median is 73.89 vs. the industry median of 85.57, African Copper 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 Metals & Mining company?
The median Days Inventory among Metals & Mining companies is 85.57, based on 680 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. African Copper's current Days Inventory of 64.06 is 25.1% 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 African Copper and its competitors. For the Metals & Mining industry, the median Days Inventory is 85.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. African Copper's current Days Inventory is 64.06, which is 13% below median its own 10-year median of 73.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is African Copper stock overvalued right now?
African Copper (LSE:ACU) has a current Days Inventory of 64.06. The current Days Inventory is 64.06, which is 13% below median its 10-year median of 73.89 and 25.1% below the Metals & Mining industry median of 85.57. 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 African Copper (LSE:ACU), the current Days Inventory is 64.06 as of Sep. 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.

African Copper Business Description

African Copper PLC was incorporated on February 11, 2004 in England and Wales. The Company is engaged in the exploration for, development and mining of, copper deposits in the Republic of Botswana. Its main activity is that of a holding company. Its main project is the copper producing open pit Mowana mine. The Company's wholly-owned subsidiary Messina holds the Dukwe Project comprising exploration licence PL 33/2005, with an area of 139.6 km2. The Dukwe Project with its associated licences encompasses the Mowana Mine and all current estimated mineral resources and reserves associated with the mine; together with north and south extensions of mineralization that lie outside of the Mowana Mine licence area. It also owns the rights to the adjacent Thakadu-Makala deposits and holds permits in exploration properties at the Matsitama Project which is contiguous to the southern boundary of the Mowana Mine.