China Gengsheng Minerals (FRA:CGS) Inventory Turnover : 1.40 (As of Dec. 2013)

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What is China Gengsheng Minerals 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 Gengsheng Minerals's Cost of Goods Sold for the three months ended in Dec. 2013 was €14.09 Mil. China Gengsheng Minerals's Average Total Inventories for the quarter that ended in Dec. 2013 was €10.03 Mil. China Gengsheng Minerals's Inventory Turnover for the quarter that ended in Dec. 2013 was 1.40.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. China Gengsheng Minerals's Days Inventory for the three months ended in Dec. 2013 was 64.97.

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 Gengsheng Minerals's Inventory-to-Revenue for the quarter that ended in Dec. 2013 was 0.69.

China Gengsheng Minerals Inventory Turnover Historical Data

The historical data trend for China Gengsheng Minerals'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 Gengsheng Minerals Inventory Turnover Chart

China Gengsheng Minerals Annual Data

Trend

Sep06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Inventory Turnover

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3.53

3.61

3.73

4.07

3.97

China Gengsheng Minerals Quarterly Data
	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13
Inventory Turnover	Get a 7-Day Free Trial															1.05	0.76	0.94	0.85	1.40

China Gengsheng Minerals Inventory Turnover Calculation

China Gengsheng Minerals's Inventory Turnover for the fiscal year that ended in Dec. 2013 is calculated as

	Inventory Turnover (A: Dec. 2013 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2013 )	/ (	(Total Inventories (A: Dec. 2012 )	+	Total Inventories (A: Dec. 2013 ))	/	count )
=	38.554	/ (	(9.884	+	9.523)	/	2 )
=	38.554	/	9.7035
=	3.97

China Gengsheng Minerals's Inventory Turnover for the quarter that ended in Dec. 2013 is calculated as

	Inventory Turnover (Q: Dec. 2013 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2013 )	/ (	(Total Inventories (Q: Sep. 2013 )	+	Total Inventories (Q: Dec. 2013 ))	/	count )
=	14.09	/ (	(10.541	+	9.523)	/	2 )
=	14.09	/	10.032
=	1.40

China Gengsheng Minerals (FRA:CGS) 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 Gengsheng Minerals's Days Inventory for the three months ended in Dec. 2013 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2013 )	/	Cost of Goods Sold (Q: Dec. 2013 )	*	Days in Period
	=	10.032	/	14.09	*	365 / 4
	=	64.97

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 Gengsheng Minerals's Inventory to Revenue for the quarter that ended in Dec. 2013 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2013 )	/	Revenue (Q: Dec. 2013 )
	=	10.032	/	14.507
	=	0.69

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 Gengsheng Minerals Inventory Turnover Related Terms

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China Gengsheng Minerals (FRA:CGS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » China Gengsheng Minerals (FRA:CGS) » Definitions » Inventory Turnover

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Traded in Other Exchanges

N/A

Address

No. 88 Gengsheng Road, Dayugou Town, Gongyi, Henan, CHN, 451271

Website

http://www.gengsheng.com

China Gengsheng Minerals Inc is a holding company. It operates in the materials technology industry through its subsidiaries in China. It develops, manufactures and sells a broad range of mineral-based products. Its products include refractory products, industrial ceramics, fracture proppants and fine precision abrasives and corundum materials. It sells its products to iron, steel, oil, glass, cement, aluminum, chemical and solar industries. The company has Refractories, Industrial ceramic, Fracture proppant, Fire precision abrasives segments. It derives the majority of its revenues from Refractories segment.

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