African Minerals (FRA:OUV) Inventory Turnover : 4.93 (As of Jun. 2014)

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What is African 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. African Minerals's Cost of Goods Sold for the six months ended in Jun. 2014 was €296.5 Mil. African Minerals's Average Total Inventories for the quarter that ended in Jun. 2014 was €60.1 Mil. African Minerals's Inventory Turnover for the quarter that ended in Jun. 2014 was 4.93.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. African Minerals's Days Inventory for the six months ended in Jun. 2014 was 37.00.

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. African Minerals's Inventory-to-Revenue for the quarter that ended in Jun. 2014 was 0.20.

African Minerals Inventory Turnover Historical Data

The historical data trend for African 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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African Minerals Inventory Turnover Chart

African Minerals Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Inventory Turnover

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9.32

African Minerals Semi-Annual Data
	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14
Inventory Turnover	Get a 7-Day Free Trial				-	-	4.88	4.86	4.93

African Minerals Inventory Turnover Calculation

African 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 )
=	479.172	/ (	(43.282	+	59.495)	/	2 )
=	479.172	/	51.3885
=	9.32

African Minerals's Inventory Turnover for the quarter that ended in Jun. 2014 is calculated as

	Inventory Turnover (Q: Jun. 2014 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jun. 2014 )	/ (	(Total Inventories (Q: Dec. 2013 )	+	Total Inventories (Q: Jun. 2014 ))	/	count )
=	296.461	/ (	(59.495	+	60.72)	/	2 )
=	296.461	/	60.1075
=	4.93

African Minerals (FRA:OUV) 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.

African Minerals's Days Inventory for the six months ended in Jun. 2014 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2014 )	/	Cost of Goods Sold (Q: Jun. 2014 )	*	Days in Period
	=	60.1075	/	296.461	*	365 / 2
	=	37.00

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.

African Minerals's Inventory to Revenue for the quarter that ended in Jun. 2014 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2014 )	/	Revenue (Q: Jun. 2014 )
	=	60.1075	/	293.811
	=	0.20

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.

African Minerals Inventory Turnover Related Terms

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African Minerals (FRA:OUV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » African Minerals Ltd (FRA:OUV) » Definitions » Inventory Turnover

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N/A

Address

Stratton House, 5 Stratton Street, London, GBR, W1J 8LA

Website

http://www.african-minerals.com

African Minerals Ltd is a mineral exploration and development company. It is engaged in the development, design, construction, and operation of iron ore deposit at Tonkolili, Sierra Leone, and its related rail and port infrastructure. In addition, it is also involved in the marketing and sale of the iron ore produced from this project.

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