China Runji Cement (China Runji Cement) Inventory Turnover : 4.15 (As of Feb. 2011)

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What is China Runji Cement 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 Runji Cement's Cost of Goods Sold for the three months ended in Feb. 2011 was $11.38 Mil. China Runji Cement's Average Total Inventories for the quarter that ended in Feb. 2011 was $2.74 Mil. China Runji Cement's Inventory Turnover for the quarter that ended in Feb. 2011 was 4.15.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. China Runji Cement's Days Inventory for the three months ended in Feb. 2011 was 21.99.

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 Runji Cement's Inventory-to-Revenue for the quarter that ended in Feb. 2011 was 0.16.

China Runji Cement Inventory Turnover Historical Data

The historical data trend for China Runji Cement'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 Runji Cement Inventory Turnover Chart

China Runji Cement Annual Data

Trend

Jan06

Jan07

Aug08

Aug09

Aug10

Inventory Turnover

9.38

20.06

23.51

China Runji Cement Quarterly Data
	Apr06	Jul06	Oct06	Jan07	Apr07	Jul07	Oct07	Feb08	May08	Aug08	Nov08	Feb09	May09	Aug09	Nov09	Feb10	May10	Aug10	Nov10	Feb11
Inventory Turnover	Get a 7-Day Free Trial															4.87	4.09	4.23	6.22	4.15

China Runji Cement Inventory Turnover Calculation

China Runji Cement's Inventory Turnover for the fiscal year that ended in Aug. 2010 is calculated as

	Inventory Turnover (A: Aug. 2010 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Aug. 2010 )	/ (	(Total Inventories (A: Aug. 2009 )	+	Total Inventories (A: Aug. 2010 ))	/	count )
=	46.806	/ (	(1.892	+	2.09)	/	2 )
=	46.806	/	1.991
=	23.51

China Runji Cement's Inventory Turnover for the quarter that ended in Feb. 2011 is calculated as

	Inventory Turnover (Q: Feb. 2011 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Feb. 2011 )	/ (	(Total Inventories (Q: Nov. 2010 )	+	Total Inventories (Q: Feb. 2011 ))	/	count )
=	11.384	/ (	(2.437	+	3.051)	/	2 )
=	11.384	/	2.744
=	4.15

China Runji Cement (GREY:CRJI) 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 Runji Cement's Days Inventory for the three months ended in Feb. 2011 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Feb. 2011 )	/	Cost of Goods Sold (Q: Feb. 2011 )	*	Days in Period
	=	2.744	/	11.384	*	365 / 4
	=	21.99

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 Runji Cement's Inventory to Revenue for the quarter that ended in Feb. 2011 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Feb. 2011 )	/	Revenue (Q: Feb. 2011 )
	=	2.744	/	17.042
	=	0.16

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 Runji Cement Inventory Turnover Related Terms

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China Runji Cement (China Runji Cement) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » China Runji Cement Inc (GREY:CRJI) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

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Address

Xianzong town, Hanshan county, Chaohu, Anhui, CHN

Website

China Runji Cement Inc through its subsidiary is engaged in the production and sale of cement in mainland China.

China Runji Cement (China Runji Cement) Headlines

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