Lizhan Environmental (Lizhan Environmental) Days Inventory : 289.88 (As of Mar. 2012)

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What is Lizhan Environmental Days Inventory?

Days Inventory is also known as Days Sales of Inventory (DSI). Lizhan Environmental's Average Total Inventories for the three months ended in Mar. 2012 was $14.83 Mil. Lizhan Environmental's Cost of Goods Sold for the three months ended in Mar. 2012 was $4.67 Mil. Hence, Lizhan Environmental's Days Inventory for the three months ended in Mar. 2012 was 289.88.

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

LZENF's Days Inventory is not ranked ^*
in the Manufacturing - Apparel & Accessories industry.
Industry Median: 132.415
* Ranked among companies with meaningful Days Inventory only.

Lizhan Environmental's Days Inventory increased from Dec. 2010 (63.50) to Mar. 2012 (289.88). It might indicate that Lizhan Environmental's sales slowed down.

Inventory Turnover measures how fast the company turns over its inventory within a year. Lizhan Environmental's Inventory Turnover for the three months ended in Mar. 2012 was 0.31.

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. Lizhan Environmental's Inventory-to-Revenue for the three months ended in Mar. 2012 was 2.81.

Lizhan Environmental Days Inventory Historical Data

The historical data trend for Lizhan Environmental'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.

* Premium members only.

Lizhan Environmental Days Inventory Chart

Lizhan Environmental Annual Data

Trend

Sep08

Sep09

Sep10

Sep11

Days Inventory

53.27

51.30

42.38

108.92

Lizhan Environmental Quarterly Data
	Sep08	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Mar12
Days Inventory	Get a 7-Day Free Trial							63.50	160.79	107.22	158.90	289.88

Competitive Comparison of Lizhan Environmental's Days Inventory

For the Textile Manufacturing subindustry, Lizhan Environmental'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.

Lizhan Environmental's Days Inventory Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Lizhan Environmental's Days Inventory distribution charts can be found below:

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

Lizhan Environmental Days Inventory Calculation

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

Lizhan Environmental's Days Inventory for the fiscal year that ended in Sep. 2011 is calculated as

	Days Inventory (A: Sep. 2011 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (A: Sep. 2010 )	+	Total Inventories (A: Sep. 2011 ))	/	count )	/	Cost of Goods Sold (A: Sep. 2011 )	*	Days in Period
=	( (4.666	+	13.009)	/	2 )	/	29.614	*	365
=	8.8375					/	29.614	*	365
=	108.92

Lizhan Environmental's Days Inventory for the quarter that ended in Mar. 2012 is calculated as:

	Days Inventory (Q: Mar. 2012 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (Q: Sep. 2011 )	+	Total Inventories (Q: Mar. 2012 ))	/	count )	/	Cost of Goods Sold (Q: Mar. 2012 )	*	Days in Period
=	( (13.009	+	16.643)	/	2 )	/	4.667	*	365 / 4
=	14.826					/	4.667	*	365 / 4
=	289.88

Lizhan Environmental (OTCPK:LZENF) 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.

Lizhan Environmental's Inventory Turnover for the three months ended in Mar. 2012 is calculated as

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	4.667	/	14.826
	=	0.31

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.

Lizhan Environmental's Inventory to Revenue for the three months ended in Mar. 2012 is calculated as

Inventory-to-Revenue	=	Average Total Inventories	/	Revenue
	=	14.826	/	5.272
	=	2.81

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.

Lizhan Environmental Days Inventory Related Terms

Thank you for viewing the detailed overview of Lizhan Environmental's Days Inventory provided by GuruFocus.com. Please click on the following links to see related term pages.

Lizhan Environmental (Lizhan Environmental) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Lizhan Environmental Corp (OTCPK:LZENF) » Definitions » Days Inventory

Traded in Other Exchanges

N/A

Address

No. 716, Qifu Road, Wutong Street, Tongxiang, Zhejiang Province, CHN, 314500

Website

http://gb.lzencorp.com/

Lizhan Environmental Corp manufactures, distributes and markets synthetic leather and other fabrics from recycled leather waste, among other materials. It's products used in the production of residential and office furniture, garments, automotive upholstery products, and various consumer applications. It sells domestically in China and export to distributors and manufacturers in the United States and other foreign countries.

Lizhan Environmental (Lizhan Environmental) Headlines

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