Cradle Arc (LSE:ALO) Days Inventory: 156.29 (As of Jun. 2018) — 90% Below Median

What is Cradle Arc Days Inventory?

Cradle Arc LSE:ALO Days Inventory is 156.29 as of Jun. 2018, which is 90% below its 10-year median of 1,594.38. The stock has 6 warning signs investors should review.

Days Inventory is also known as Days Sales of Inventory (DSI). Cradle Arc's Average Total Inventories for the six months ended in Jun. 2018 was £1.71 Mil. Cradle Arc's Cost of Goods Sold for the six months ended in Jun. 2018 was £2.00 Mil. Hence, Cradle Arc's Days Inventory for the six months ended in Jun. 2018 was 156.29.

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

LSE:ALO' s Days Inventory Range Over the Past 10 Years
Min: 189.46 Med: 1594.38 Max: 1594.38
Current: 189.46

During the past 12 years, Cradle Arc's highest Days Inventory was 1594.38. The lowest was 189.46. And the median was 1594.38.

LSE:ALO's Days Inventory is not ranked
in the Metals & Mining industry.
Industry Median: 85.57 vs LSE:ALO: 189.46

Cradle Arc's Days Inventory increased from Jun. 2017 (0.00) to Jun. 2018 (156.29). It might indicate that Cradle Arc's sales slowed down.

Warning Sign:

If a company builds up inventory, it may mean it is having difficulties selling its goods.

Inventory Turnover measures how fast the company turns over its inventory within a year. Cradle Arc's Inventory Turnover for the six months ended in Jun. 2018 was 1.17.

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. Cradle Arc's Inventory-to-Revenue for the six months ended in Jun. 2018 was 1.15.

Cradle Arc (LSE:ALO) 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.

Cradle Arc's Inventory Turnover for the six months ended in Jun. 2018 is calculated as

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	2.002	/	1.7145
	=	1.17

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.

Cradle Arc's Inventory to Revenue for the six months ended in Jun. 2018 is calculated as

Inventory-to-Revenue	=	Average Total Inventories	/	Revenue
	=	1.7145	/	1.489
	=	1.15

* 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.

Cradle Arc Days Inventory Related Terms

Cradle Arc Days Inventory Historical Data

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The historical data trend for Cradle Arc's Days Inventory can be seen below:

Cradle Arc Days Inventory Chart

Cradle Arc Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Days Inventory

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0.00

3,188.76

Cradle Arc Semi-Annual Data
	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18
Days Inventory	Get a 7-Day Free Trial															0.00	0.00	0.00	1,594.38	156.29

Cradle Arc Days Inventory Competitor Comparison

For the Other Industrial Metals & Mining subindustry, Cradle Arc'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.

Cradle Arc Days Inventory vs Metals & Mining Industry

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

* The bar in red indicates where Cradle Arc's Days Inventory falls into.

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Cradle Arc Days Inventory Calculation

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

Cradle Arc's Days Inventory for the fiscal year that ended in Dec. 2017 is calculated as

	Days Inventory (A: Dec. 2017 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (A: Dec. 2016 )	+	Total Inventories (A: Dec. 2017 ))	/	count )	/	Cost of Goods Sold (A: Dec. 2017 )	*	Days in Period
=	( (0	+	1.756)	/	1 )	/	0.201	*	365
=	1.756					/	0.201	*	365
=	3,188.76

Cradle Arc's Days Inventory for the quarter that ended in Jun. 2018 is calculated as:

	Days Inventory (Q: Jun. 2018 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (Q: Dec. 2017 )	+	Total Inventories (Q: Jun. 2018 ))	/	count )	/	Cost of Goods Sold (Q: Jun. 2018 )	*	Days in Period
=	( (1.756	+	1.673)	/	2 )	/	2.002	*	365 / 2
=	1.7145					/	2.002	*	365 / 2
=	156.29

Frequently Asked Questions Learn more about Days Inventory →

What does a Days Inventory of 156.29 mean?

Cradle Arc (LSE:ALO) has a Days Inventory of 156.29 as of Jun. 2018. Days inventory represents the average amount of days a company holds inventory before selling it. View historical data on Cradle Arc and its competitors. This is 90% below median its historical median of 1,594.38. Over the past decade, Cradle Arc's Days Inventory has ranged from 189.46 to 1,594.38.

Is Cradle Arc's Days Inventory too high?

Cradle Arc's current Days Inventory of 156.29 is 90% below median its 10-year median of 1,594.38. Over the past 10 years, this metric has ranged from a low of 189.46 to a high of 1,594.38. The Metals & Mining industry median Days Inventory is 85.57. Cradle Arc's value of 156.29 is 82.6% above this industry median.

How does Cradle Arc's Days Inventory compare to competitors?

Cradle Arc's Days Inventory of 156.29 can be compared against companies in the Metals & Mining industry. The industry median Days Inventory is 85.57. Cradle Arc's value of 156.29 is 82.6% above this benchmark. Historically, Cradle Arc's own Days Inventory has ranged from 189.46 to 1,594.38 over the past decade. While the company's 10-year median is 1,594.38 vs. the industry median of 85.57, Cradle Arc has consistently been above 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. Cradle Arc's current Days Inventory of 156.29 is 82.6% above 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 Cradle Arc 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. Cradle Arc's current Days Inventory is 156.29, which is 90% below median its own 10-year median of 1,594.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Cradle Arc stock overvalued right now?

Cradle Arc (LSE:ALO) has a current Days Inventory of 156.29. The current Days Inventory is 156.29, which is 90% below median its 10-year median of 1,594.38 and 82.6% above 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 Cradle Arc (LSE:ALO), the current Days Inventory is 156.29 as of Jun. 2018. 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.

Cradle Arc Business Description

Industry Basic Materials Metals & Mining

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Address 27/28 Eastcastle Street, Eastcastle House, London, GBR, W1W 8DH

Website http://www.cradlearc.com

Cradle Arc PLC, formerly known as Alecto Minerals PLC is engaged in exploration and development of precious and base metals. Its main countries of operation are Botswana, Zambia and Mali. The company's properties include Mowana Copper Mine, and Matala Gold Mine.