ARHN (Archon) Inventory Turnover: 14.77 (As of Dec. 2010)


What is Archon Inventory Turnover?

Archon ARHN Inventory Turnover is 14.77 as of Dec. 2010.

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Archon's Cost of Goods Sold for the three months ended in Dec. 2010 was $2.27 Mil. Archon's Average Total Inventories for the quarter that ended in Dec. 2010 was $0.15 Mil. Archon's Inventory Turnover for the quarter that ended in Dec. 2010 was 14.77.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Archon's Days Inventory for the three months ended in Dec. 2010 was 6.18.

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. Archon's Inventory-to-Revenue for the quarter that ended in Dec. 2010 was 0.03.

Archon  (OTCPK:ARHN) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

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

Archon's Days Inventory for the three months ended in Dec. 2010 is calculated as:

Days Inventory =Average Total Inventories (Q: Dec. 2010 )/Cost of Goods Sold (Q: Dec. 2010 )*Days in Period
=0.154/2.274*365 / 4
=6.18

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.

Archon's Inventory to Revenue for the quarter that ended in Dec. 2010 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Dec. 2010 ) / Revenue (Q: Dec. 2010 )
=0.154 / 5.123
=0.03

* 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

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Archon Inventory Turnover Related Terms

Archon Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Archon's Inventory Turnover 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.

Archon Inventory Turnover Chart

Archon Annual Data
Trend Sep01 Sep02 Sep03 Sep04 Sep05 Sep06 Sep07 Sep08 Sep09 Sep10
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 53.33 51.28 49.95 52.48 58.88

Archon Quarterly Data
Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10
Inventory Turnover 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 14.30 15.55 17.24 15.50 14.77

Archon Inventory Turnover Calculation

Archon's Inventory Turnover for the fiscal year that ended in Sep. 2010 is calculated as

Inventory Turnover (A: Sep. 2010 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Sep. 2010 ) / ((Total Inventories (A: Sep. 2009 ) + Total Inventories (A: Sep. 2010 )) / count )
=11.304 / ((0.232 + 0.152) / 2 )
=11.304 / 0.192
=58.88

Archon's Inventory Turnover for the quarter that ended in Dec. 2010 is calculated as

Inventory Turnover (Q: Dec. 2010 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Dec. 2010 ) / ((Total Inventories (Q: Sep. 2010 ) + Total Inventories (Q: Dec. 2010 )) / count )
=2.274 / ((0.152 + 0.156) / 2 )
=2.274 / 0.154
=14.77

* 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 Inventory Turnover →
What does a Inventory Turnover of 14.77 mean?
Archon (ARHN) has a Inventory Turnover of 14.77 as of Dec. 2010. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Archon and its competitors.
Is Archon's Inventory Turnover too high?
Archon's current Inventory Turnover is 14.77.
How does Archon's Inventory Turnover compare to FLL and UWN?
Archon's Inventory Turnover of 14.77 can be compared against companies in the Travel & Leisure industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Inventory Turnover for a Travel & Leisure company?
A good Inventory Turnover depends on the Travel & Leisure industry context. However, Inventory Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Inventory Turnover mean?
A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Archon and its competitors. Archon's current Inventory Turnover is 14.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Archon stock overvalued right now?
Archon (ARHN) has a current Inventory Turnover of 14.77. The current Inventory Turnover is 14.77. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Inventory Turnover calculated?
Inventory Turnover is calculated from a company's financial statements. For Archon (ARHN), the current Inventory Turnover is 14.77 as of Dec. 2010. 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.

Archon Business Description

Address 2200 Casino Drive, Laughlin, NV, USA, 89029
Archon Corp is a United States based company focused on operating the Pioneer Hotel & Gambling Hall in Laughlin through its wholly-owned subsidiary. It is engaged in operating hotel and casino activities. In addition, the company also owns real estates and investment properties.