CNWT (Cistera Networks) Inventory Turnover: 4.07 (As of Sep. 2010)


What is Cistera Networks Inventory Turnover?

Cistera Networks CNWT Inventory Turnover is 4.07 as of Sep. 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. Cistera Networks's Cost of Goods Sold for the three months ended in Sep. 2010 was $0.17 Mil. Cistera Networks's Average Total Inventories for the quarter that ended in Sep. 2010 was $0.04 Mil. Cistera Networks's Inventory Turnover for the quarter that ended in Sep. 2010 was 4.07.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Cistera Networks's Days Inventory for the three months ended in Sep. 2010 was 22.40.

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. Cistera Networks's Inventory-to-Revenue for the quarter that ended in Sep. 2010 was 0.07.

Cistera Networks  (OTCPK:CNWT) 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.

Cistera Networks's Days Inventory for the three months ended in Sep. 2010 is calculated as:

Days Inventory =Average Total Inventories (Q: Sep. 2010 )/Cost of Goods Sold (Q: Sep. 2010 )*Days in Period
=0.041/0.167*365 / 4
=22.40

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.

Cistera Networks's Inventory to Revenue for the quarter that ended in Sep. 2010 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Sep. 2010 ) / Revenue (Q: Sep. 2010 )
=0.041 / 0.577
=0.07

* 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.

Cistera Networks Inventory Turnover Related Terms

Cistera Networks Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Cistera Networks'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.

Cistera Networks Inventory Turnover Chart

Cistera Networks Annual Data
Trend Mar01 Mar02 Mar03 Mar04 Mar05 Mar06 Mar07 Mar08 Mar09 Mar10
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.44 6.38 7.43 6.12 7.39

Cistera Networks Quarterly Data
Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10
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 1.94 1.55 2.26 5.43 4.07

Cistera Networks Inventory Turnover Calculation

Cistera Networks's Inventory Turnover for the fiscal year that ended in Mar. 2010 is calculated as

Inventory Turnover (A: Mar. 2010 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Mar. 2010 ) / ((Total Inventories (A: Mar. 2009 ) + Total Inventories (A: Mar. 2010 )) / count )
=0.628 / ((0.125 + 0.045) / 2 )
=0.628 / 0.085
=7.39

Cistera Networks's Inventory Turnover for the quarter that ended in Sep. 2010 is calculated as

Inventory Turnover (Q: Sep. 2010 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Sep. 2010 ) / ((Total Inventories (Q: Jun. 2010 ) + Total Inventories (Q: Sep. 2010 )) / count )
=0.167 / ((0.029 + 0.053) / 2 )
=0.167 / 0.041
=4.07

* 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 4.07 mean?
Cistera Networks (CNWT) has a Inventory Turnover of 4.07 as of Sep. 2010. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Cistera Networks and its competitors.
Is Cistera Networks' Inventory Turnover too high?
Cistera Networks' current Inventory Turnover is 4.07.
How does Cistera Networks' Inventory Turnover compare to INLX and VEII?
Cistera Networks' Inventory Turnover of 4.07 can be compared against companies in the Software 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 Software company?
A good Inventory Turnover depends on the Software 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 Cistera Networks and its competitors. Cistera Networks's current Inventory Turnover is 4.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cistera Networks stock overvalued right now?
Cistera Networks (CNWT) has a current Inventory Turnover of 4.07. The current Inventory Turnover is 4.07. 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 Cistera Networks (CNWT), the current Inventory Turnover is 4.07 as of Sep. 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.

Cistera Networks Business Description

Address 5045 Lorimar Drive, Suite 180, Plano, TX, USA, 75093 5707
Cistera Networks Inc is a provider of cloud business communications solutions. It acts as a global provider of call recording, speech analytics and business intelligence solutions via on-site server or the cloud.