Gemfields (LSE:GEMA) Days Inventory: 453.56 (As of Dec. 2016) — Near Median

What is Gemfields Days Inventory?

Gemfields LSE:GEMA Days Inventory is 453.56 as of Dec. 2016, which is 8% above its 10-year median of 419.23. The stock has 4 warning signs investors should review.

Days Inventory is also known as Days Sales of Inventory (DSI). Gemfields's Average Total Inventories for the six months ended in Dec. 2016 was £84.20 Mil. Gemfields's Cost of Goods Sold for the six months ended in Dec. 2016 was £33.88 Mil. Hence, Gemfields's Days Inventory for the six months ended in Dec. 2016 was 453.56.

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

LSE:GEMA' s Days Inventory Range Over the Past 10 Years
Min: 68.53 Med: 419.23 Max: 713.48
Current: 425.08

During the past 13 years, Gemfields's highest Days Inventory was 713.48. The lowest was 68.53. And the median was 419.23.

LSE:GEMA's Days Inventory is not ranked
in the Metals & Mining industry.
Industry Median: 85.61 vs LSE:GEMA: 425.08

Gemfields's Days Inventory increased from Dec. 2015 (404.63) to Dec. 2016 (453.56). It might indicate that Gemfields's sales slowed down.

Inventory Turnover measures how fast the company turns over its inventory within a year. Gemfields's Inventory Turnover for the six months ended in Dec. 2016 was 0.40.

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. Gemfields's Inventory-to-Revenue for the six months ended in Dec. 2016 was 2.06.

Gemfields (LSE:GEMA) 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.

Gemfields's Inventory Turnover for the six months ended in Dec. 2016 is calculated as

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	33.878	/	84.195
	=	0.40

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.

Gemfields's Inventory to Revenue for the six months ended in Dec. 2016 is calculated as

Inventory-to-Revenue	=	Average Total Inventories	/	Revenue
	=	84.195	/	40.888
	=	2.06

* 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.

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.

Gemfields Days Inventory Related Terms

Gemfields Days Inventory Historical Data

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

Gemfields Days Inventory Chart

Gemfields Annual Data

Trend

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

Jun15

Jun16

Days Inventory

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391.03

555.41

421.97

393.24

383.32

Gemfields Semi-Annual Data
	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16
Days Inventory	Get a 7-Day Free Trial															468.79	368.86	404.63	386.55	453.56

Gemfields Days Inventory Competitor Comparison

For the Other Precious Metals & Mining subindustry, Gemfields'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.

Gemfields Days Inventory vs Metals & Mining Industry

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

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

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Gemfields Days Inventory Calculation

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

Gemfields's Days Inventory for the fiscal year that ended in Jun. 2016 is calculated as

	Days Inventory (A: Jun. 2016 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (A: Jun. 2015 )	+	Total Inventories (A: Jun. 2016 ))	/	count )	/	Cost of Goods Sold (A: Jun. 2016 )	*	Days in Period
=	( (67.326	+	78.808)	/	2 )	/	69.575	*	365
=	73.067					/	69.575	*	365
=	383.32

Gemfields's Days Inventory for the quarter that ended in Dec. 2016 is calculated as:

	Days Inventory (Q: Dec. 2016 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (Q: Jun. 2016 )	+	Total Inventories (Q: Dec. 2016 ))	/	count )	/	Cost of Goods Sold (Q: Dec. 2016 )	*	Days in Period
=	( (78.808	+	89.582)	/	2 )	/	33.878	*	365 / 2
=	84.195					/	33.878	*	365 / 2
=	453.56

Frequently Asked Questions Learn more about Days Inventory →

What does a Days Inventory of 453.56 mean?

Gemfields (LSE:GEMA) has a Days Inventory of 453.56 as of Dec. 2016. Days inventory represents the average amount of days a company holds inventory before selling it. View historical data on Gemfields and its competitors. This is near median its historical median of 419.23. Over the past decade, Gemfields' Days Inventory has ranged from 68.53 to 713.48.

Is Gemfields' Days Inventory too high?

Gemfields' current Days Inventory of 453.56 is near median its 10-year median of 419.23. Over the past 10 years, this metric has ranged from a low of 68.53 to a high of 713.48. The Metals & Mining industry median Days Inventory is 85.61. Gemfields' value of 453.56 is 429.8% above this industry median.

How does Gemfields' Days Inventory compare to competitors?

Gemfields' Days Inventory of 453.56 can be compared against companies in the Metals & Mining industry. The industry median Days Inventory is 85.61. Gemfields' value of 453.56 is 429.8% above this benchmark. Historically, Gemfields' own Days Inventory has ranged from 68.53 to 713.48 over the past decade. While the company's 10-year median is 419.23 vs. the industry median of 85.61, Gemfields 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. Gemfields's current Days Inventory of 453.56 is 429.8% 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 Gemfields 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. Gemfields's current Days Inventory is 453.56, which is near median its own 10-year median of 419.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Gemfields stock overvalued right now?

Gemfields (LSE:GEMA) has a current Days Inventory of 453.56. The current Days Inventory is 453.56, which is near median its 10-year median of 419.23 and 429.8% 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 Gemfields (LSE:GEMA), the current Days Inventory is 453.56 as of Dec. 2016. 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.

Gemfields Business Description

Industry Basic Materials Metals & Mining

Comparable Companies TSX:MPVD TSX:LUC TSXV:GBU LSE:EUA TSXV:MTA LSE:SLP JSE:GML PHS:APX TSX:CGG TSXV:CKG LSE:GEMD LSE:PDL TSX:GGD TSX:DIAM TSXV:ITR TSXV:ARU TSX:PTM ASX:NWF ASX:BOC OHEL:SOSI1

Address St Julian’s Avenue, Royal Chambers, PO Box 186, Saint Peter Port, GGY, W1S 2HR

Website http://www.gemfields.co.uk

Gemfields PLC is a supplier of colored gemstones specializing in emeralds and amethysts from Zambia and rubies from Mozambique. The company's assets include Kagem emerald mine, Montepuez ruby mine, Kariba amethyst mine, Faberge, and it also has emerald, sapphire and ruby exploration projects at Colombia, Ethiopia, Sri Lanka, and Madagascar. Its segments consist of Zambia, Mozambique, United Kingdom, Faberge, and others. The company earns the majority of the revenue from the sale of rough and cut and polished gemstones as well as wholesale and retail sales of the gemstones and jewelry in the Faberge business.