Frontier Mining (LSE:FML) Days Inventory: 387.31 (As of Sep. 2014) — 79% Above Median


What is Frontier Mining Days Inventory?

Frontier Mining LSE:FML -16.67% Days Inventory is 387.31 as of Sep. 2014, which is 79% above its 10-year median of 216.78. The stock has 3 warning signs investors should review.

Days Inventory is also known as Days Sales of Inventory (DSI). Frontier Mining's Average Total Inventories for the three months ended in Sep. 2014 was £9.19 Mil. Frontier Mining's Cost of Goods Sold for the three months ended in Sep. 2014 was £2.17 Mil. Hence, Frontier Mining's Days Inventory for the three months ended in Sep. 2014 was 387.31.

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

LSE:FML' s Days Inventory Range Over the Past 10 Years
Min: 51.48   Med: 216.78   Max: 496.73
Current: 173.08

During the past 9 years, Frontier Mining's highest Days Inventory was 496.73. The lowest was 51.48. And the median was 216.78.

LSE:FML's Days Inventory is not ranked
in the Metals & Mining industry.
Industry Median: 85.61 vs LSE:FML: 173.08

Frontier Mining's Days Inventory increased from Jun. 2013 (0.00) to Sep. 2014 (387.31). It might indicate that Frontier Mining'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. Frontier Mining's Inventory Turnover for the three months ended in Sep. 2014 was 0.24.

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. Frontier Mining's Inventory-to-Revenue for the three months ended in Sep. 2014 was 3.51.


Frontier Mining  (LSE:FML) 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.

Frontier Mining's Inventory Turnover for the three months ended in Sep. 2014 is calculated as

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.

Frontier Mining's Inventory to Revenue for the three months ended in Sep. 2014 is calculated as

* 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.


Frontier Mining Days Inventory Related Terms


Frontier Mining Days Inventory Historical Data

* Premium members only.

The historical data trend for Frontier Mining'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.

Frontier Mining Days Inventory Chart

Frontier Mining Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Days Inventory
Get a 7-Day Free Trial Premium Member Only 53.15 56.22 83.01 350.79 499.67

Frontier Mining Quarterly Data
Dec09 Jun10 Dec10 Jun11 Dec11 Dec12 Jun13 Sep13 Dec13 Jun14 Sep14
Days Inventory Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 0.00 241.00 412.21 9,758.12 387.31

Frontier Mining Days Inventory Competitor Comparison

For the Other Industrial Metals & Mining subindustry, Frontier Mining'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.


Frontier Mining Days Inventory vs Metals & Mining Industry

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

* The bar in red indicates where Frontier Mining's Days Inventory falls into.



Frontier Mining Days Inventory Calculation

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

Frontier Mining's Days Inventory for the fiscal year that ended in Dec. 2013 is calculated as

Days Inventory (A: Dec. 2013 )
=Average Total Inventories / Cost of Goods Sold*Days in Period
=( (Total Inventories (A: Dec. 2012 ) + Total Inventories (A: Dec. 2013 )) / count ) / Cost of Goods Sold (A: Dec. 2013 )*Days in Period
=( (6.045 + 8.592) / 2 ) / 5.346*365
=7.3185 / 5.346*365
=499.67

Frontier Mining'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: Jun. 2014 ) + Total Inventories (Q: Sep. 2014 )) / count ) / Cost of Goods Sold (Q: Sep. 2014 )*Days in Period
=( (8.732 + 9.655) / 2 ) / 2.166*365 / 4
=9.1935 / 2.166*365 / 4
=387.31

* 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 387.31 mean?
Frontier Mining (LSE:FML) has a Days Inventory of 387.31 as of Sep. 2014. Days inventory represents the average amount of days a company holds inventory before selling it. View historical data on Frontier Mining and its competitors. This is 79% above median its historical median of 216.78. Over the past decade, Frontier Mining's Days Inventory has ranged from 51.48 to 496.73.
Is Frontier Mining's Days Inventory too high?
Frontier Mining's current Days Inventory of 387.31 is 79% above median its 10-year median of 216.78. Over the past 10 years, this metric has ranged from a low of 51.48 to a high of 496.73. The Metals & Mining industry median Days Inventory is 85.61. Frontier Mining's value of 387.31 is 352.4% above this industry median.
How does Frontier Mining's Days Inventory compare to competitors?
Frontier Mining's Days Inventory of 387.31 can be compared against companies in the Metals & Mining industry. The industry median Days Inventory is 85.61. Frontier Mining's value of 387.31 is 352.4% above this benchmark. Historically, Frontier Mining's own Days Inventory has ranged from 51.48 to 496.73 over the past decade. While the company's 10-year median is 216.78 vs. the industry median of 85.61, Frontier Mining 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 85.61, based on 681 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. Frontier Mining's current Days Inventory of 387.31 is 352.4% 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 Frontier Mining and its competitors. For the Metals & Mining industry, the median Days Inventory is 85.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Frontier Mining's current Days Inventory is 387.31, which is 79% above median its own 10-year median of 216.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frontier Mining stock overvalued right now?
Frontier Mining (LSE:FML) has a current Days Inventory of 387.31. The current Days Inventory is 387.31, which is 79% above median its 10-year median of 216.78 and 352.4% above the Metals & Mining industry median of 85.61. 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 Frontier Mining (LSE:FML), the current Days Inventory is 387.31 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.

Frontier Mining Business Description

Frontier Mining Ltd was incorporated under the law of the state of Delaware on 5 August 1998. It is engaged in mineral exploration and development. It explores and develops gold and copper deposits in the Republic of Kazakhstan. Its activities currently relate to two licenses: the wholly owned Naimanjal contract license area and the 50% owned Benkala joint venture license.