CHNGQ (China Natural Gas) Inventory Turnover: 7.58 (As of Sep. 2013)

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What is China Natural Gas Inventory Turnover?

China Natural Gas CHNGQ -95.00% Inventory Turnover is 7.58 as of Sep. 2013.

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. China Natural Gas's Cost of Goods Sold for the three months ended in Sep. 2013 was $22.5 Mil. China Natural Gas's Average Total Inventories for the quarter that ended in Sep. 2013 was $3.0 Mil. China Natural Gas's Inventory Turnover for the quarter that ended in Sep. 2013 was 7.58.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. China Natural Gas's Days Inventory for the three months ended in Sep. 2013 was 12.04.

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. China Natural Gas's Inventory-to-Revenue for the quarter that ended in Sep. 2013 was 0.09.

China Natural Gas  (OTCPK:CHNGQ) 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.

China Natural Gas's Days Inventory for the three months ended in Sep. 2013 is calculated as:

Days Inventory =Average Total Inventories (Q: Sep. 2013 )/Cost of Goods Sold (Q: Sep. 2013 )*Days in Period
=2.9645/22.465*365 / 4
=12.04

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.

China Natural Gas's Inventory to Revenue for the quarter that ended in Sep. 2013 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Sep. 2013 ) / Revenue (Q: Sep. 2013 )
=2.9645 / 32.031
=0.09

* 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.

China Natural Gas Inventory Turnover Related Terms

China Natural Gas Inventory Turnover Historical Data

* Premium members only.

The historical data trend for China Natural Gas'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.

China Natural Gas Inventory Turnover Chart

China Natural Gas Annual Data
Trend Jul03 Jul04 Jul05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 93.16 60.07 60.97 55.18 43.39

China Natural Gas Quarterly Data
Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13
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 6.24 9.80 8.18 7.72 7.58

China Natural Gas Inventory Turnover Calculation

China Natural Gas's Inventory Turnover for the fiscal year that ended in Dec. 2012 is calculated as

Inventory Turnover (A: Dec. 2012 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2012 ) / ((Total Inventories (A: Dec. 2011 ) + Total Inventories (A: Dec. 2012 )) / count )
=95.744 / ((1.939 + 2.474) / 2 )
=95.744 / 2.2065
=43.39

China Natural Gas's Inventory Turnover for the quarter that ended in Sep. 2013 is calculated as

Inventory Turnover (Q: Sep. 2013 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Sep. 2013 ) / ((Total Inventories (Q: Jun. 2013 ) + Total Inventories (Q: Sep. 2013 )) / count )
=22.465 / ((2.917 + 3.012) / 2 )
=22.465 / 2.9645
=7.58

* 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 7.58 mean?
China Natural Gas (CHNGQ) has a Inventory Turnover of 7.58 as of Sep. 2013. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on China Natural Gas and its competitors.
Is China Natural Gas' Inventory Turnover too high?
China Natural Gas' current Inventory Turnover is 7.58.
How does China Natural Gas' Inventory Turnover compare to SXEEQ and CNIG?
China Natural Gas' Inventory Turnover of 7.58 can be compared against companies in the Utilities - Regulated 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 an Utilities - Regulated company?
A good Inventory Turnover depends on the Utilities - Regulated 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 China Natural Gas and its competitors. China Natural Gas's current Inventory Turnover is 7.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Natural Gas stock overvalued right now?
China Natural Gas (CHNGQ) has a current Inventory Turnover of 7.58. The current Inventory Turnover is 7.58. 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 China Natural Gas (CHNGQ), the current Inventory Turnover is 7.58 as of Sep. 2013. 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.

China Natural Gas Business Description

Address 35 Tang Yan Road, 19th Floor Building B, Van Metropolis, Hi-Tech Zone, Shaanxi Province, Xian, CHN, 710065
China Natural Gas Inc through its subsidiaries engages in sales & distribution of natural gas and gasoline to commercial, industrial & residential customers, construction of pipeline networks, installation of natural gas fittings & parts for end-users.