New World Resources (LSE:NWR) Days Inventory: 28.45 (As of Dec. 2015) — 34% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is New World Resources Days Inventory?

New World Resources LSE:NWR Days Inventory is 28.45 as of Dec. 2015, which is 34% below its 10-year median of 43.33. The stock has 4 warning signs investors should review.

Days Inventory is also known as Days Sales of Inventory (DSI). New World Resources's Average Total Inventories for the three months ended in Dec. 2015 was £36.87 Mil. New World Resources's Cost of Goods Sold for the three months ended in Dec. 2015 was £118.27 Mil. Hence, New World Resources's Days Inventory for the three months ended in Dec. 2015 was 28.45.

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

LSE:NWR' s Days Inventory Range Over the Past 10 Years
Min: 21.87   Med: 43.33   Max: 66.02
Current: 35.52

During the past 10 years, New World Resources's highest Days Inventory was 66.02. The lowest was 21.87. And the median was 43.33.

LSE:NWR's Days Inventory is not ranked
in the Other Energy Sources industry.
Industry Median: 29.63 vs LSE:NWR: 35.52

New World Resources's Days Inventory increased from Dec. 2014 (24.80) to Dec. 2015 (28.45). It might indicate that New World Resources's sales slowed down.

Inventory Turnover measures how fast the company turns over its inventory within a year. New World Resources's Inventory Turnover for the three months ended in Dec. 2015 was 3.21.

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. New World Resources's Inventory-to-Revenue for the three months ended in Dec. 2015 was 0.27.


New World Resources  (LSE:NWR) 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.

New World Resources's Inventory Turnover for the three months ended in Dec. 2015 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.

New World Resources's Inventory to Revenue for the three months ended in Dec. 2015 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.


New World Resources Days Inventory Related Terms


New World Resources Days Inventory Historical Data

* Premium members only.

The historical data trend for New World Resources'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.

New World Resources Days Inventory Chart

New World Resources Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Days Inventory
Get a 7-Day Free Trial Premium Member Only Premium Member Only 49.40 49.61 38.24 21.41 27.89

New World Resources Quarterly Data
Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15
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 Premium Member Only 24.80 37.98 44.05 39.92 28.45

LSE:NWR vs WMLPQ: Days Inventory Comparison

For the Thermal Coal subindustry, New World Resources'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.


New World Resources Days Inventory vs Other Energy Sources Industry

For the Other Energy Sources industry and Energy sector, New World Resources's Days Inventory distribution charts can be found below:

* The bar in red indicates where New World Resources's Days Inventory falls into.



New World Resources Days Inventory Calculation

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

New World Resources's Days Inventory for the fiscal year that ended in Dec. 2015 is calculated as

Days Inventory (A: Dec. 2015 )
=Average Total Inventories / Cost of Goods Sold*Days in Period
=( (Total Inventories (A: Dec. 2014 ) + Total Inventories (A: Dec. 2015 )) / count ) / Cost of Goods Sold (A: Dec. 2015 )*Days in Period
=( (32.179 + 29.948) / 2 ) / 406.507*365
=31.0635 / 406.507*365
=27.89

New World Resources's Days Inventory for the quarter that ended in Dec. 2015 is calculated as:

Days Inventory (Q: Dec. 2015 )
=Average Total Inventories / Cost of Goods Sold*Days in Period
=( (Total Inventories (Q: Sep. 2015 ) + Total Inventories (Q: Dec. 2015 )) / count ) / Cost of Goods Sold (Q: Dec. 2015 )*Days in Period
=( (43.794 + 29.948) / 2 ) / 118.265*365 / 4
=36.871 / 118.265*365 / 4
=28.45

* 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 28.45 mean?
New World Resources (LSE:NWR) has a Days Inventory of 28.45 as of Dec. 2015. Days inventory represents the average amount of days a company holds inventory before selling it. View historical data on New World Resources and its competitors. This is 34% below median its historical median of 43.33. Over the past decade, New World Resources' Days Inventory has ranged from 21.87 to 66.02.
Is New World Resources' Days Inventory too high?
New World Resources' current Days Inventory of 28.45 is 34% below median its 10-year median of 43.33. Over the past 10 years, this metric has ranged from a low of 21.87 to a high of 66.02. The Other Energy Sources industry median Days Inventory is 29.63. New World Resources' value of 28.45 is 4% below this industry median.
How does New World Resources' Days Inventory compare to WMLPQ?
New World Resources' Days Inventory of 28.45 can be compared against companies in the Other Energy Sources industry. The industry median Days Inventory is 29.63. New World Resources' value of 28.45 is 4% below this benchmark. Historically, New World Resources' own Days Inventory has ranged from 21.87 to 66.02 over the past decade. While the company's 10-year median is 43.33 vs. the industry median of 29.63, New World Resources 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 an Other Energy Sources company?
The median Days Inventory among Other Energy Sources companies is 29.63, based on 119 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. New World Resources's current Days Inventory of 28.45 is 4% 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 New World Resources and its competitors. For the Other Energy Sources industry, the median Days Inventory is 29.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New World Resources's current Days Inventory is 28.45, which is 34% below median its own 10-year median of 43.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New World Resources stock overvalued right now?
New World Resources (LSE:NWR) has a current Days Inventory of 28.45. The current Days Inventory is 28.45, which is 34% below median its 10-year median of 43.33 and 4% below the Other Energy Sources industry median of 29.63. 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 New World Resources (LSE:NWR), the current Days Inventory is 28.45 as of Dec. 2015. 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.

New World Resources Business Description

Address Herengracht 448, Amsterdam, NLD, 1017 CA
New World Resources PLC is a coking and thermal coal producer for the steel and energy sectors in Central Europe. The company's hard coal reserves are situated in the Upper Silesian basin, covering an area of approximately 120 square kilometers. The company's customer includes ArcelorMittal, U.S. Steel, voestalpine, Dalkia, CEZ, Verbund, Moravia Steel, and ThyssenKrupp. New World Resources operates in Czech Republic, Slovakia, Austria, Poland, and Germany.