Life Technologies (FRA:IVN) Inventory Turnover : 0.91 (As of Sep. 2013)

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What is Life Technologies 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. Life Technologies's Cost of Goods Sold for the three months ended in Sep. 2013 was €292 Mil. Life Technologies's Average Total Inventories for the quarter that ended in Sep. 2013 was €319 Mil. Life Technologies's Inventory Turnover for the quarter that ended in Sep. 2013 was 0.91.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Life Technologies's Days Inventory for the three months ended in Sep. 2013 was 99.80.

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. Life Technologies's Inventory-to-Revenue for the quarter that ended in Sep. 2013 was 0.46.

Life Technologies Inventory Turnover Historical Data

The historical data trend for Life Technologies'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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Life Technologies Inventory Turnover Chart

Life Technologies Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Inventory Turnover

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2.34

3.61

4.60

4.76

4.26

Life Technologies 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															1.07	1.09	0.99	0.94	0.91

Life Technologies Inventory Turnover Calculation

Life Technologies'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 )
=	1267.994	/ (	(287.178	+	307.458)	/	2 )
=	1267.994	/	297.318
=	4.26

Life Technologies'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 )
=	291.86	/ (	(315.959	+	322.455)	/	2 )
=	291.86	/	319.207
=	0.91

Life Technologies (FRA:IVN) 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.

Life Technologies'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
	=	319.207	/	291.86	*	365 / 4
	=	99.80

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.

Life Technologies'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 )
	=	319.207	/	699.447
	=	0.46

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.

Life Technologies Inventory Turnover Related Terms

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Life Technologies (FRA:IVN) Business Description

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Address

Website

http://www.invitrogen.com

Life Technologies Corp began operations as a California partnership in 1987 and incorporated in California in 1989. In 1997, the Company reincorporated as a Delaware corporation. On November 21, 2008, Invitrogen Corporation, a predecessor company to Life Technologies, completed the acquisition of Applied Biosystems, Inc. to form a new company called Life Technologies Corporation. The Company is a global life sciences company dedicated to improving the human condition. The Company's systems, consumables and services enable researchers and commercial markets to accelerate scientific exploration, to discoveries and developments that better the quality of life. The Company's products are also used in forensics, food and water testing and other industrial applications. The Company delivers a range of products and services, including systems, instruments, reagents, software, and custom services. Its growing portfolio of products includes innovative technologies for capillary electrophoresis-based sequencing, next generation sequencing, PCR, sample preparation, cell culture, RNA interference analysis, functional genomics research, proteomics and cell biology applications, as well as clinical diagnostic applications, forensics and animal, food, pharmaceutical and water testing analysis. The Company also provides its customers convenient and value-added purchasing options through thousands of sales and service professionals, e-commerce capabilities and onsite supply center solutions. The Company operates is business under three divisions: Molecular Biology Systems ('MBS'), Cell Systems ('CS'), and Genetic Systems ('GS'). The MBS division includes the molecular biology-based technologies, including basic and real-time PCR, RNAi, DNA synthesis, sample prep, transfection, cloning and protein expression profiling, protein analysis and thermo-cycler instrumentation. The CS division includes all product lines used in the study of cell function, including cell culture media and sera, stem cells and related tools, cellular imaging products, antibodies, drug discovery services and cell therapy related products. The GS division includes capillary electrophoresis systems and reagents and next generation sequencing systems and reagents, including the SOLiDTM and Ion TorrentTM systems, as well as reagent kits developed specifically for applied markets, such as forensics and food safety, animal health and pharmaceutical quality monitoring. The Company offers many different products and services and is continually developing and/or acquiring others. Some of its specific product categories include the following: 'High-throughput' gene cloning and expression technology; Pre-cast electrophoresis products; Antibodies; Magnetic beads; Molecular Probes fluorescence-based technologies; Transfection reagents; PCR and Real Time PCR systems and reagents; and RNA Interference reagents. The Company's manufacturing operations require a variety of raw materials, elec

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