AZ Electronic Materials (FRA:OAZ) Inventory Turnover : 2.49 (As of Dec. 2013)

View and export this data going back to . Start your Free Trial

What is AZ Electronic Materials 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. AZ Electronic Materials's Cost of Goods Sold for the six months ended in Dec. 2013 was €141.8 Mil. AZ Electronic Materials's Average Total Inventories for the quarter that ended in Dec. 2013 was €56.9 Mil. AZ Electronic Materials's Inventory Turnover for the quarter that ended in Dec. 2013 was 2.49.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. AZ Electronic Materials's Days Inventory for the six months ended in Dec. 2013 was 73.26.

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. AZ Electronic Materials's Inventory-to-Revenue for the quarter that ended in Dec. 2013 was 0.21.

AZ Electronic Materials Inventory Turnover Historical Data

The historical data trend for AZ Electronic Materials'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.

* Premium members only.

AZ Electronic Materials Inventory Turnover Chart

AZ Electronic Materials Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Inventory Turnover

4.58

4.43

5.48

5.38

5.10

AZ Electronic Materials Semi-Annual Data
	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13
Inventory Turnover	Get a 7-Day Free Trial			2.74	2.50	2.55	2.57	2.49

AZ Electronic Materials Inventory Turnover Calculation

AZ Electronic Materials'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 )
=	288.204	/ (	(58.674	+	54.385)	/	2 )
=	288.204	/	56.5295
=	5.10

AZ Electronic Materials'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: Jun. 2013 )	+	Total Inventories (Q: Dec. 2013 ))	/	count )
=	141.766	/ (	(59.427	+	54.385)	/	2 )
=	141.766	/	56.906
=	2.49

AZ Electronic Materials (FRA:OAZ) 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.

AZ Electronic Materials's Days Inventory for the six 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
	=	56.906	/	141.766	*	365 / 2
	=	73.26

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.

AZ Electronic Materials'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 )
	=	56.906	/	267.618
	=	0.21

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.

AZ Electronic Materials Inventory Turnover Related Terms

Thank you for viewing the detailed overview of AZ Electronic Materials's Inventory Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.

AZ Electronic Materials (FRA:OAZ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » AZ Electronic Materials SA (FRA:OAZ) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.azem.com

AZ Electronic Materials SA is a Luxembourg- based company engaged in producing and supplying specialty chemicals. It focuses on three business areas Integrated Circuits which involves dielectrics, underlayers, yield enhancers, CMP slurries and pattern enhancers, Display Materials and AZ products such as specialty chemicals and materials used in integrated circuits and devise as well as flat panel displays and photolithographic printing.

AZ Electronic Materials (FRA:OAZ) Headlines

No Headlines