Circuit Research Labs (Circuit Research Labs) Inventory Turnover : 0.47 (As of Sep. 2008)

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What is Circuit Research Labs 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. Circuit Research Labs's Cost of Goods Sold for the three months ended in Sep. 2008 was $1.43 Mil. Circuit Research Labs's Average Total Inventories for the quarter that ended in Sep. 2008 was $3.02 Mil. Circuit Research Labs's Inventory Turnover for the quarter that ended in Sep. 2008 was 0.47.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Circuit Research Labs's Days Inventory for the three months ended in Sep. 2008 was 193.35.

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. Circuit Research Labs's Inventory-to-Revenue for the quarter that ended in Sep. 2008 was 0.92.

Circuit Research Labs Inventory Turnover Historical Data

The historical data trend for Circuit Research Labs'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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Circuit Research Labs Inventory Turnover Chart

Circuit Research Labs Annual Data

Trend

Dec98

Dec99

Dec00

Dec01

Dec02

Dec03

Dec04

Dec05

Dec06

Dec07

Inventory Turnover

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2.51

2.69

2.54

2.20

2.33

Circuit Research Labs Quarterly Data
	Dec03	Mar04	Jun04	Sep04	Dec04	Mar05	Jun05	Sep05	Dec05	Mar06	Jun06	Sep06	Dec06	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08	Sep08
Inventory Turnover	Get a 7-Day Free Trial															0.62	0.73	0.69	0.58	0.47

Circuit Research Labs Inventory Turnover Calculation

Circuit Research Labs's Inventory Turnover for the fiscal year that ended in Dec. 2007 is calculated as

	Inventory Turnover (A: Dec. 2007 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2007 )	/ (	(Total Inventories (A: Dec. 2006 )	+	Total Inventories (A: Dec. 2007 ))	/	count )
=	5.776	/ (	(2.586	+	2.367)	/	2 )
=	5.776	/	2.4765
=	2.33

Circuit Research Labs's Inventory Turnover for the quarter that ended in Sep. 2008 is calculated as

	Inventory Turnover (Q: Sep. 2008 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2008 )	/ (	(Total Inventories (Q: Jun. 2008 )	+	Total Inventories (Q: Sep. 2008 ))	/	count )
=	1.426	/ (	(2.816	+	3.227)	/	2 )
=	1.426	/	3.0215
=	0.47

Circuit Research Labs (OTCPK:CRLI) 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.

Circuit Research Labs's Days Inventory for the three months ended in Sep. 2008 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2008 )	/	Cost of Goods Sold (Q: Sep. 2008 )	*	Days in Period
	=	3.0215	/	1.426	*	365 / 4
	=	193.35

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.

Circuit Research Labs's Inventory to Revenue for the quarter that ended in Sep. 2008 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2008 )	/	Revenue (Q: Sep. 2008 )
	=	3.0215	/	3.285
	=	0.92

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.

Circuit Research Labs Inventory Turnover Related Terms

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Circuit Research Labs (Circuit Research Labs) Business Description

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7970 S. Kyrene Road, Tempe, AZ, USA, 85282

Website

Circuit Research Labs Inc develops manufactures and markets electronic audio processing, transmission encoding and noise reduction equipment for the radio, television, cable, Internet and professional audio markets.

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