CPQQ (China Power Equipment) Inventory Turnover : 8.31 (As of Sep. 2013)

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What is China Power Equipment Inventory Turnover?

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 Power Equipment's Cost of Goods Sold for the three months ended in Sep. 2013 was $6.87 Mil. China Power Equipment's Average Total Inventories for the quarter that ended in Sep. 2013 was $0.83 Mil. China Power Equipment's Inventory Turnover for the quarter that ended in Sep. 2013 was 8.31.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. China Power Equipment's Days Inventory for the three months ended in Sep. 2013 was 10.98.

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 Power Equipment's Inventory-to-Revenue for the quarter that ended in Sep. 2013 was 0.09.

China Power Equipment Inventory Turnover Historical Data

The historical data trend for China Power Equipment'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.

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China Power Equipment Inventory Turnover Chart

China Power Equipment Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Inventory Turnover

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17.47

44.04

43.35

58.49

123.40

China Power Equipment 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															10.77	14.00	12.29	9.05	8.31

China Power Equipment Inventory Turnover Calculation

China Power Equipment'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 )
=	27.086	/ (	(0.304	+	0.135)	/	2 )
=	27.086	/	0.2195
=	123.40

China Power Equipment'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 )
=	6.866	/ (	(0.77	+	0.882)	/	2 )
=	6.866	/	0.826
=	8.31

China Power Equipment (OTCPK:CPQQ) 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 Power Equipment'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
	=	0.826	/	6.866	*	365 / 4
	=	10.98

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 Power Equipment'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 )
	=	0.826	/	9.13
	=	0.09

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 Power Equipment Inventory Turnover Related Terms

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China Power Equipment Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » China Power Equipment Inc (OTCPK:CPQQ) » Definitions » Inventory Turnover

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Traded in Other Exchanges

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Address

Yongle Industry Zone, Jingyang Industry Concentration Area, Xi’an, Shaanxi, CHN, 713702

Website

http://www.chinapower-equipment.com

China Power Equipment Inc designs, manufactures, and distributes amorphous alloy transformer cores and amorphous alloy distribution transformers in the Peoples Republic of China. Its devices are used to step down voltage at the final phase of the distribution of electricity to consumers, businesses, and industries. The Company offers its products to electricity generators and suppliers, suppliers of electrical equipment, and other electric power transformers manufacturers.

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