Cadence Pharmaceuticals, (FRA:QEW) Inventory Turnover : 1.55 (As of Dec. 2013)

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

What is Cadence Pharmaceuticals, 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. Cadence Pharmaceuticals,'s Cost of Goods Sold for the three months ended in Dec. 2013 was €8.43 Mil. Cadence Pharmaceuticals,'s Average Total Inventories for the quarter that ended in Dec. 2013 was €5.44 Mil. Cadence Pharmaceuticals,'s Inventory Turnover for the quarter that ended in Dec. 2013 was 1.55.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Cadence Pharmaceuticals,'s Days Inventory for the three months ended in Dec. 2013 was 58.83.

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. Cadence Pharmaceuticals,'s Inventory-to-Revenue for the quarter that ended in Dec. 2013 was 0.21.

Cadence Pharmaceuticals, Inventory Turnover Historical Data

The historical data trend for Cadence Pharmaceuticals,'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.

Cadence Pharmaceuticals, Inventory Turnover Chart

Cadence Pharmaceuticals, Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Inventory Turnover

Get a 7-Day Free Trial

13.26

5.90

4.92

Cadence Pharmaceuticals, 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															1.25	1.31	1.23	1.48	1.55

Cadence Pharmaceuticals, Inventory Turnover Calculation

Cadence Pharmaceuticals,'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 )
=	27.72	/ (	(4.951	+	6.312)	/	2 )
=	27.72	/	5.6315
=	4.92

Cadence Pharmaceuticals,'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 )
=	8.43	/ (	(4.558	+	6.312)	/	2 )
=	8.43	/	5.435
=	1.55

Cadence Pharmaceuticals, (FRA:QEW) 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.

Cadence Pharmaceuticals,'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
	=	5.435	/	8.43	*	365 / 4
	=	58.83

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.

Cadence Pharmaceuticals,'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 )
	=	5.435	/	25.778
	=	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.

Cadence Pharmaceuticals, Inventory Turnover Related Terms

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

Cadence Pharmaceuticals, (FRA:QEW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Cadence Pharmaceuticals, Inc. (FRA:QEW) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.cadencepharm.com

Cadence Pharmaceuticals, Inc. is a biopharmaceutical company focused on in-licensing, developing and commercializing product candidates mainly for use in the hospital setting. The Company's main activities are conducting research and development activities as well as conducting clinical trials. The company has in-licensed rights to products: Acetavance, an intravenous formulation of acetaminophen, and Omigard, an omiganan pentahydrochloride 1% aqueous gel. It in-licensed the exclusive United States, or U.S., and Canadian rights to Acetavance from Bristol-Myers Squibb Company, or BMS, which markets this product candidate in Europe and other markets for the treatment of acute pain and fever under the brand name Perfalgan. The Company is developing Acetavance, a proprietary intravenous formulation of acetaminophen, for the U.S. market for the treatment of acute pain and fever in adults and children. In its oral form, acetaminophen is the most widely used drug for the treatment of pain and fever in the U.S. The Company's licensor, BMS, currently markets this proprietary intravenous formulation of acetaminophen for the treatment of acute pain and fever in Europe and several other markets outside the U.S, where it is known as paracetamol and is marketed under the brand name Perfalgan.

Cadence Pharmaceuticals, (FRA:QEW) Headlines

No Headlines